Flughafen Zürich AG Zürich Flughafen

Annual Report 2009

Annual Report | 2009 Every one of us has a favourite spot. And these are as diverse as the people who share their impressions of them with us. Employees, passengers and visitors to Zurich Airport also have their own places – at Switzerland's gateway to the world and the Alps – where they can switch off, recharge their batteries, work or pursue their fascination with flying. Let's visit these small but special spots with them. 2009

Flughafen Zürich AG, P.O. Box, CH–8058 Zurich-Airport, Phone +41 (0)43 816 22 11 Annual Report | Flughafen Zürich AG Zürich Flughafen

Annual Report 2009 Flughafen Zürich AG Corporate profile 4 Annual Report | 2009 Every one of us has a favourite spot. And these are as diverse as the people who share Foreword their impressions of them with us. Employees, Address to shareholders 7 passengers and visitors to Zurich Airport Review & outlook also have their own places – at Switzerland's Significant events 12 Customers & markets 14 gateway to the world and the Alps – where Economic & social environment 16 they can switch off, recharge their batteries, Quality & innovation management 20 work or pursue their fascination with Communication & partnerships 25

flying. Let's visit these small but special Business & traffic trends spots with them. Key data (2-year comparison) 28 Trend in traffic volume 30 Total revenue & earnings trend 33 Segment reporting 38 Assets & financial position 42 Outlook 45 Airport of Zurich Noise Fund 46

Environmental protection 50

Corporate governance 62

Risk management 72

Financial report Consolidated financial statements according to IFRS 82 Audit report 129

Financial statements according to the Swiss Code of Obligations (OR) 132 Audit report 146 2009

Flughafen Zürich AG, P.O. Box, CH–8058 Zurich-Airport, Phone +41 (0)43 816 22 11 Annual Report |

- 3 - Key dataKey (5-year data (5-year comparison) comparison) SelectedSelected key data key excluding data excluding the influence the influence of aircraft of aircraft noise (5-yearnoise (5-year comparison) comparison)1) 1) 2010 financial2010 financial calendar calendar AmountsAmounts in accordance in accordance with International with International Financial Financial Reporting Reporting Standards Standards (IFRS) (IFRS)

The followingThe following key data key are data shown are excludingshown excluding the influence the influence of aircraft of aircraftnoise: noise:

(CHF 1,000)(CHF 1,000) 2009 2009 2008 2008 2007 2007 2006 2006 2005 2005 (CHF 1,000)(CHF 1,000) 2009 2009 20082008 2007 2007 2006 2006 2005 2005 FinancialFinancial reporting reporting dates dates Total revenueTotal revenue 820,207 820,207 855,103 855,103 802,868 802,868 737,109 737,109 702,229 702,229 Total revenueTotal revenue 792,606 792,606 812,998 812,998 748,564 748,564 686,933 686,933 656,031 656,031 19 March19 2010March 2010 Publication Publication of 2009 of annual 2009 reportannual report of which revenueof which from revenue aviation from operations aviation operations 505,092 505,092 525,689 525,689 495,981 495,981 444,238 444,238 418,877 418,877 of which revenueof which from revenue aviation from operations aviation operations 472,824 472,824 479,253 479,253 437,703 437,703 390,215 390,215 368,543 368,543 15 April 152010 April 2010 2010 General 2010 General Meeting Meeting of Shareholders of Shareholders of which revenueof which from revenue non-aviation from non-aviation operations operations 315,115 315,115 329,414 329,414 306,887 306,887 292,871 292,871 283,352 283,352 of which revenueof which from revenue non-aviation from non-aviation operations operations 319,782 319,782 333,745 333,745 310,861 310,861 296,718 296,718 287,488 287,488 18 August18 August2010 2010 Publication Publication of 2010 of interim 2010 interimreport report OperatingOperating expenses expenses 417,973 417,973 434,862 434,862 392,753 392,753 358,837 358,837 338,282 338,282 OperatingOperating expenses expenses 417,973 417,973 434,862 434,862 392,753 392,753 358,837 358,837 338,282 338,282 14 April14 2011 April 2011 2011 General 2011 General Meeting Meeting of Shareholders of Shareholders Earnings beforeEarnings interest, before tax, interest, depreciation tax, depreciation and amortisation and amortisation (EBITDA) (EBITDA) 402,234 402,234 420,241 420,241 410,115 410,115 378,272 378,272 363,947 363,947 Earnings beforeEarnings interest, before tax, interest, depreciation tax, depreciation and amortisation and amortisation (EBITDA) (EBITDA) 374,633 374,633 378,136 378,136 355,811 355,811 328,096 328,096 317,749 317,749 EBITDA marginEBITDA (in margin %) (in %) 49.0 49.0 49.1 49.1 51.1 51.1 51.3 51.3 51.8 51.8 EBITDA marginEBITDA (in margin %) (in %) 47.2 47.2 46.5 46.5 47.5 47.5 47.8 47.8 48.4 48.4 PublicationPublication dates of dates traffic of traffic statistics statistics Earnings beforeEarnings interest before and interest tax (EBIT) and tax (EBIT) 213,156 213,156 234,073 234,073 229,202 229,202 189,416 189,416 175,026 175,026 Profit Profit 176,653 176,653 100,613 100,613 83,495 83,495 46,952 46,952 21,045 21,045 14 April14 2010 April 2010 Traffic Trafficstatistics statistics for March for 2010March 2010 EBIT marginEBIT (in margin %) (in %) 26.0 26.0 27.4 27.4 28.5 28.5 25.7 25.7 24.9 24.9 14 May 142010 May 2010 Traffic Trafficstatistics statistics for April for 2010 April 2010 Profit Profit 190,610 190,610 121,314 121,314 130,675 130,675 87,448 87,448 59,123 59,123 11 June 201011 June 2010 Traffic Trafficstatistics statistics for May for 2010 May 2010 Key data forKey shareholders data for shareholders 2009 2009 20082008 2007 2007 2006 2006 2005 2005 12 July 201012 July 2010 Traffic Trafficstatistics statistics for June for 2010 June 2010 Cash flowCash from flow operations from operations 350,933 350,933 415,102 415,102 410,911 410,911 367,213 367,213 338,285 338,285 Payout ratioPayout (in %) ratio (in %) 26.1 26.1 30.5 30.5 33.1 33.1 39.2 39.2 23.3 23.3 11 August11 August2010 2010 Traffic Trafficstatistics statistics for July for2010 July 2010 Cash flowCash from flow investing from investingactivities activities 134,437 134,437 258,849 258,849 147,339 147,339 258,772 258,772 117,173 117,173 Basic earningsBasic per earnings share (inper Swissshare francs)(in Swiss francs) 28.92 28.92 16.41 16.41 13.61 13.61 8.24 8.24 4.30 4.30 14 September14 September 2010 2010 Traffic Trafficstatistics statistics for August for August2010 2010 Invested capitalInvested as capitalof 31 December as of 31 December 2,846,535 2,846,535 2,660,769 2,660,769 2,614,569 2,614,569 2,644,440 2,644,440 2,584,795 2,584,795 12 October12 October 2010 2010 Traffic Trafficstatistics statistics for September for September 2010 2010 Ø capital employedØ capital employed 2,753,652 2,753,652 2,637,669 2,637,669 2,629,505 2,629,505 2,614,618 2,614,618 2,569,922 2,569,922 1) The reported1) The key reported data excluding key data excludingthe influence the influenceof aircraft ofnoise aircraft were noise adjusted were for adjusted all significant for all significant positions relatingpositions to relating aircraft tonoise aircraft in the noise income in the statement income statement and balance and balance 11 November11 November 2010 2010 Traffic Trafficstatistics statistics for October for October2010 2010 Return on ReturnØ capital on employedØ capital employed(ROCE in (ROCE%) in %) 6.2 6.2 7.1 7.1 6.9 6.9 5.7 5.7 5.4 5.4 sheet. In thesheet. income In the statement, income statement, these positions these arepositions noise charges,are noise noise-related charges, noise-related operating operatingexpenses, expenses,amortisation amortisation of the intangible of the intangibleasset from asset the right from of the formal right of formal 13 December13 December 2010 2010 Traffic Trafficstatistics statistics for November for November 2010 2010 Equity as ofEquity 31 December as of 31 December 1,598,411 1,598,411 1,428,935 1,428,935 1,373,384 1,373,384 1,230,464 1,230,464 805,999 805,999 expropriation,expropriation, noise-related noise-related financial financialexpenses expensesand financial and income,financial andincome, the tax and effects the tax arising effects from arising these from adjustments. these adjustments. In the balance In the sheet, balance all thesheet, significant all the significant Return on Returnequity (inon equity%) (in %) 12.6 12.6 8.7 8.7 10.0 10.0 8.6 8.6 7.6 7.6 noise-relatednoise-related asset and assetliability and positions liability havepositions been have eliminated. been eliminated. InvestorInvestor Relations Relations Equity ratioEquity (in %) ratio (in %) 44.9 44.9 42.5 42.5 43.2 43.2 38.8 38.8 26.3 26.3 MichaelMichael Ackermann, Ackermann, phone +41 phone (0)43 +41 816 (0)43 76 98816 76 98 Interest-bearingInterest-bearing liabilities (net)liabilities (net) 838,175 838,175 1,019,008 1,019,008 918,833 918,833 1,177,985 1,177,985 1,745,299 1,745,299 [email protected]@unique.ch Interest-bearingInterest-bearing liabilities/EBITDA liabilities/EBITDA 2.08x 2.08x 2.42x 2.42x 2.24x 2.24x 3.11x 3.11x 4.80x 4.80x From 15From April 152010: April [email protected] 2010: [email protected]

CorporateCorporate Communications Communications Key operationalKey operational data data 2009 2009 2008 2008 2007 2007 2006 2006 2005 2005 Sonja Zöchling,Sonja Zöchling, phone +41 phone (0)43 +41 816 (0)43 46 35816 46 35 Number ofNumber passengers of passengers 21,926,872 21,926,872 22,099,233 22,099,233 20,739,113 20,739,113 19,237,216 19,237,216 17,884,652 17,884,652 [email protected]@unique.ch Number ofNumber flight ofmovements flight movements 262,121 262,121 274,991 274,991 268,476 268,476 260,786 260,786 267,363 267,363 Freight in tonnesFreight in tonnes 344,415 344,415 387,671 387,671 374,264 374,264 363,325 363,325 372,415 372,415 From 15From April 152010: April [email protected] 2010: [email protected] Number ofNumber full-time of positions full-time aspositions of 31 December as of 31 December 1,302 1,302 1,254 1,254 1,319 1,319 1,290 1,290 1,262 1,262 Number ofNumber employees of employees as of 31 December as of 31 December 1,549 1,549 1,482 1,482 1,552 1,552 1,523 1,523 1,470 1,470 FurtherFurther information information Results Resultsand financial and financial information: information: www.unique.ch/investor www.unique.ch/investor From 15From April 152010, April www.zurich-airport.com/investorrelations 2010, www.zurich-airport.com/investorrelations Key data forKey shareholders data for shareholders 2009 2009 2008 2008 2007 2007 2006 2006 2005 2005 Number ofNumber issued sharesof issued shares 6,140,375 6,140,375 6,140,375 6,140,375 6,140,375 6,140,375 6,140,375 6,140,375 4,912,300 4,912,300 The AnnualThe AnnualReport isReport available is available in German in German and English. and English.The German The German Proposed/paidProposed/paid dividend per dividend share (inper Swissshare francs)(in Swiss 1) francs) 1) 7.50 7.50 5.00 5.00 4.50 4.50 3.00 3.00 1.00 1.00 Dividend totalDividend (in thousand total (in thousandSwiss francs) Swiss francs) 46,053 46,053 30,702 30,702 27,632 27,632 18,421 18,421 4,912 4,912 version versionis binding. is binding. Payout ratioPayout (in %) ratio (in %) 24.2 24.2 25.3 25.3 21.2 21.2 21.1 21.1 8.3 8.3 Capital perCapital share (inper Swissshare francs)(in Swiss francs) 260.31 260.31 232.71 232.71 223.66 223.66 200.39 200.39 164.08 164.08 Basic earningsBasic per earnings share (inper Swissshare francs)(in Swiss francs) 31.20 31.20 19.78 19.78 21.30 21.30 15.35 15.35 12.08 12.08 Diluted earningsDiluted per earnings share (inper Swissshare francs)(in Swiss francs) 31.18 31.18 19.77 19.77 21.28 21.28 15.34 15.34 12.06 12.06

Share priceShare (in Swiss price francs)(in Swiss francs) – High – High 339.00 339.00 486.00486.00 538.00 538.00 380.00 380.00 236.00 236.00 – Low – Low 198.00 198.00 242.60242.60 383.00 383.00 235.00 235.00 147.00 147.00

Security Security numbernumber SIX symbol SIX symbol Reuters Reuters Flughafen FlughafenZürich AG Zürich (registered AG (registered share) share) 1056796 1056796 UZAN UZAN UZAZn.S UZAZn.S

1) Ordinary 1) dividend Ordinary of dividend 5.00 Swiss of 5.00 francs Swiss and francs special and dividend special (from dividend proceeds (from ofproceeds partial disposalof partial of disposal Bangalore of Bangalore International International Airport Ltd.) Airport of 2.50 Ltd.) Swiss of 2.50 francs Swiss in 2009. francs in 2009. PublishingPublishing details details Copyright:Copyright: Flughafen Flughafen Zürich AG Zürich AG Photos: Photos:Thorsten Thorsten Futh, Berlin Futh, Berlin Design: Design:Hotz&Hotz, Hotz&Hotz, Steinhausen Steinhausen Editorial:Editorial: Knobel CorporateKnobel Corporate CommunicationsCommunications AG, Steinhausen AG, Steinhausen Typography:Typography: Victor Hotz Victor AG, Hotz Steinhausen AG, Steinhausen Printing:Printing: www.bmdruck.ch www.bmdruck.ch Flughafen Zürich AG | Corporate profile

As the gateway to the world and the Alps, Zurich Airport When formulating and implementing its strategy, the Operations Finance has earned itself an outstanding reputation as a provider operator of Zurich Airport gives due consideration to the All the tasks required for ensuring high-quality, efficient Reporting, controlling, treasury, risk and compliance of top-quality services. Located right in the heart of Europe, aspects of cost-efficiency, environment and social and safe flight operations are grouped together in the management and airport charges are just some of the it offers excellent access to international, national and responsibility in its decision-making. In this way it aims Operations division. This includes all the services provided areas for which the Finance division is responsible. It regional transport networks. This is exemplified by the to increase the company's competitiveness and credibility for passengers in the departures, arrivals and transfer secures the financing and liquidity of Flughafen Zürich numerous awards it received once again in 2009. Zurich and add to its value on a sustainable basis. areas as well as safety and security. All partners with a role AG and ensures transparency with regard to the finan- Airport combines the advantages of a modern global hub to play in a given process are involved accordingly so cial results and the resource deployment of the company with a wide range of premium products and services everything runs smoothly. Operations is also responsible and its units. The Investor Relations department is all available within a convenient, compact space. These for all freight-related activities and, together with Aviation responsible for top-quality and timely financial reporting achievements can be credited to around 23,000 Marketing, constitutes the interface to customers and the both for internal and external purposes. This division employees who every day display unfailing commitment airlines. Furthermore, the development, construction, performs systematic evaluations and assessments of to serving the needs of their customers and to ensuring operation and maintenance of engineering structures also Flughafen Zürich AG's risk exposure as part of our risk that every hour spent at Zurich Airport is a positive fall under the remit of Operations. and compliance management. experience. Marketing & Real Estate Services Flughafen Zürich AG is owner and operator of Zurich's Zurich Airport offers visitors attractive shopping and The Services division encompasses all units that play intercontinental airport. The company was established services in both the airside and landside areas. The important roles in the organisation and procedures of in its present form on 1 January 2000 with its domicile Marketing & Real Estate division is responsible for the Flughafen Zürich AG. This includes Human Resources, in Kloten. Flughafen Zürich AG also operates airports broad range of goods and services and restaurants the Information Technology, Supply Management and abroad in collaboration with local partners. As a listed airport offers customers, including the airport's excellent Legal Services, along with Public Affairs and Corporate company it strives to be competitive and offers its private and public transport connections. Marketing & Communications. Noise Management works to minimise shareholders an attractive return on investment. Real Estate is also responsible for the development, noise and is responsible for implementing the sound Management and employees at all levels pursue a construction, operation and maintenance of buildings insulation programme. Environmental Protection deals clearly defined success strategy and generate added and for all activities related to the management and with all other aspects related to the issues of air quality, value for the entire company. rental of infrastructure. climate, energy and water resources and biosphere.

Corporate Development The Corporate Development division is responsible for major development projects at Zurich Airport, international aviation business and long-term corporate development, Flughafen Zürich AG is structured as follows: such as the large-scale projects “Zurich 2010” (Dock B, security check building, Schengen) and “The Circle”. In the interests of civil aviation development, Corporate Board of Directors Development also provides input to the SIL process Chairman / Andreas Schmid (Civil Aviation Infrastructure Plan), to amendments in the operating regulations and to the formulation of the Nomination & Compensation Committee Audit & Finance Committee master plan. In the growing area of international business, Chairman / Dr. Kaspar Schiller Chairman / Martin Candrian Fughafen Zürich AG and its partners operate ten airports across the globe.

Management Board CEO / Thomas E. Kern

Operations Marketing & Real Estate Rainer Hiltebrand Peter Eriksson

Services Corporate Development Finance Michael Schallhart Stephan Widrig Daniel Schmucki

- 5 - Foreword | Address to shareholders

Dear Shareholders, category and second place in the “Best Airport in the World” category. Furthermore, Zurich Airport improved 2009 was a very challenging year. The economic downturn the punctuality of its departing flights to 81.9 percent, hit the aviation industry particularly hard, including which places it in the top one-third of airports in an Zurich Airport. This makes us all the more proud to be international comparison of punctuality statistics. This able to present a positive result for the tenth financial was partly due to our efficiency-enhancing, interdisciplinary year of Flughafen Zürich AG. Airport Steering and extremely short transfer times. Through further key projects such as the centralisation Last year 21.9 million passengers used Zurich Airport as of security checks, Zurich Airport aims to uphold its their gateway to the world and to the Alps. This represents promise to continue delivering top-quality services in a mere 0.8 percent decline over the previous year, which future. is better than had been expected at the end of the first half of the year. This is largely attributable to the sustained “Zurich 2010” positive development of transit passenger volume, which Last year, measures to ensure the strict separation increased by 3.2 percent to 8.0 million over the previous of passengers travelling to and from Schengen and year and today accounts for 36.6 percent of total passenger non-Schengen destinations were completed under volume. The number of local passengers, which was on the the “Zurich 2010” project. The transition proceeded decline until the third quarter, also recovered in the final seamlessly thanks to extremely careful planning on months of the year, decreasing by only 3.0 percent to 13.8 the part of those in charge of the project, the completion million. Despite the only marginal fall in passengers, the of the top-quality buildings to deadline and good number of flight movements registered a more substantial co-operation among all the airport's partners. The other decline of 4.7 percent to 262,121. This is attributable to two key elements of “Zurich 2010” are a multiple-storey the increase in the number of seats offered per flight and building for centralised security checks and the new Dock B, the rise in the average seat load factor. both of which are currently under construction and are testimony to the high demands we place on operational Commercial business, in contrast, registered a efficiency and best-possible functionality at appropriate disproportionate decrease, with the average expenditure cost. per departing passenger declining to 41.84 Swiss francs (minus 3.9 percent). This trend was primarily “The Circle” due to subdued consumer sentiment and the strength Flughafen Zürich AG will continue to rely on sources of of the Swiss franc. Total revenue of our airport's shop income unrelated to aviation, as it views this area as the and restaurant operators amounted to 458.8 million one harbouring the most growth potential. To establish Swiss francs (minus 4.6 percent). the airport even more strongly as a services platform, the company wants to encourage more people to spend Reported profit is high, with a consolidated result of more time at the airport, which is the goal behind “The 190.6 million Swiss francs. In addition to the pleasingly Circle”, a large-scale project to create a high-quality stable development in traffic volume, the successful service facility. In a one-year international architecture disposal of a share of our holding in Bengaluru International competition, the team of architects “Riken Yamamoto & Airport (BIAL) in India in the fourth quarter contributed Field Shop” from Yokohama (Japan) took first place. The substantially to this result. winning project will be further developed in a subsequent phase as part of a preliminary study. The Board of Directors is proposing to the General Meeting of Shareholders the payment of an ordinary Popular business location dividend of 5.00 Swiss francs plus a special “BIAL” The numerous tenants with large space needs who dividend of 2.50 Swiss francs per share. concluded new leasing agreements in 2009 and the low vacancy rate of 3.2 percent testify to the excellent quality Quality of the business infrastructure available at Zurich Airport. A year such as 2009 is testimony to the effectiveness One tenant with whom Flughafen Zürich AG concluded a of our declared quality strategy, even under adverse lease for 5,200 m2 in 2009 was Swiss Federal Railways economic conditions. Zurich Airport was once again (SBB). Zurich's cantonal buildings insurer is also setting up voted the best airport in Europe by passengers and a call centre in some 2,900 m2 of office space from which also ranked among the best for numerous other awards. the staff of Zurich Protection and Rescue Services will be The Business Traveller Award, for example, is one of able to handle emergency calls on 118 and 144 for the the most prestigious in the industry, and in 2009 Zurich entire canton of Zurich. Andreas Schmid Airport won first place in the “European Transfers” Chairman of the Board of Directors - 7 - Foreword | Address to shareholders

“Modal split” In its December ruling on Zurich Airport’s provisional Zurich Airport's public transport connections are very regulations, the Federal Administrative Court decided good and are regarded as exemplary worldwide. Regular that flights arriving from the south and east were analyses allow the airport operator to determine the necessary and thus also permissible in the interests of percentage of individuals who travel to the airport by public maintaining orderly flight operations. The court agreed transport. The so-called “modal split”, a requirement that the capacity lost due to the successive tightening stipulated in the building permit for expansion stage 5 of regulations governing approaches over German lays down that at least 42 percent of landside traffic territory must be compensated. must take the form of public transport. The most recent survey revealed that this share was more than 46 percent, New brand meaning that Zurich Airport has substantially exceeded In the year under review the Board of Directors and its target. Management Board decided to exclusively use the “Flughafen Zürich” brand in future. The new brand Political environment emphasises the prime attributes of Swiss success In the SIL process (Civil Aviation Infrastructure Plan) such as reliability, safety and cleanliness and accentuates and the upcoming negotiations with Germany, it proved the strengths of Zurich as an economic area and place possible over the past year to establish a technical to live. The company’s new brand will be launched with framework with the potential of defusing the political this annual report and will be rolled out in stages up conflict concerning noise at Zurich Airport in the long to the end of 2010. term. Of the three operating scenarios in the SIL process that are still subject to discussion, Flughafen Zürich AG Outlook favours the “J optimised” option. This option is based on Flughafen Zürich AG expects a moderate rise in traffic the extension of runway 28, and it is significantly better volumes and a recovery in non-aviation-related business than the other options in terms of reducing the number in 2010. It will continue to invest in key projects and by of persons affected bynoise while maintaining current doing so deliver on its quality promise in the conviction capacities. As regards the negotiations with Germany, the that this will give rise to long-term market opportunities results of a jointly-conducted noise analysis revealed that and to the successful positioning of Zurich Airport. residents in the area of the Upper Rhine are not affected by noise levels exceeding any threshold values under Thanks German legislation. Now it is up to the politicians to Flughafen Zürich AG would like to express its thanks to provide the necessary legal and planning certainty and all those whose untiring efforts and commitment to find solutions for the airport and the surrounding contributed to the company’s good performance in 2009. regions. Given the economic significance of Switzerland’s We are aware that motivated and hard-working employees attractiveness as a business location, a rapid decision is are the driving force behind our performance, along with desirable and necessary. a diverse group of successful, committed partners and suppliers. The company would like to express its sincerest The Fairflug (“fair flight”) initiative was firmly rejected by thanks to you, our shareholders. Your trust is the cornerstone Zurich’s electorate at the end of September. This that enables us to take your company, Flughafen Zürich AG, strengthened the resolve of Zurich Airport to concentrate safely and successfully into the future. aircraft noise geographically with the aim of disturbing as few people as possible. Moreover, the Cantonal Parliament Zurich Airport, 4 March 2010 rejected the initiative put forward by the municipalities located under the flight paths to restrict the number of flights to 320,000 per year and to impose an 8-hour night-time curfew. As of the end of 2009 the initiative Thomas E. Kern put forward by these municipalities calling for a ban on Chief Executive Officer the construction of new runways and the expansion of Andreas Schmid Thomas E. Kern existing ones was still pending. In our capacity as Chairman of the Chief Executive Officer In the picture airport operator, we categorically reject this initiative. Board of Directors Daniel Schmucki Peter Eriksson Michael Schallhart

Absent Rainer Hiltebrand Stefan Widrig - 9 - Flugzeugenteisung

Anfahrtsplan Flughafen Zürich

Gates E

E

Place: Butzenbüel Gates A Zurich Airport Time: 12.15 p.m. Gates B Name: Bettina Romeyke Job: Manager Airport Charges & Aviation Contracts Flughafen Zürich AG

Tankstelle

- 11 - Review & outlook | Significant events

16 January 28/29 March 1 July 5 November Zurich Airport receives one of the industry's most Lengthy preparations culminate in the strict separation The new children's tour bus is put into operation, Flughafen Zürich AG concludes a strategic alliance prestigious awards: the 2008 Business Traveller Award of Schengen and non-Schengen zones, which is completed decorated to a design by 7-year old Sebastian, the winner with GVK Power & Infrastructure Ltd. (GVKPIL) for in the “European Transfers” category. In the overall overnight. of a children's art competition that attracted over the purpose of jointly developing airports on the Indian evaluation of “Best Airport in the World”, Zurich takes 300 participants. sub-continent. GVKPIL is one of India's foremost third place. 30 April infrastructure developers. General Meeting of Shareholders. The meeting votes to 24 July 26 January confirm all members of the Board of Directors for a The three Skymetro trains are extended by adding a carriage 20 November Building work starts on the new Dock B. It is to be further term of office. The dividend of 5.00 Swiss francs to each of them. The improvement is carried out as a Flughafen Zürich AG's safety management system opened in 2011 as a flexible dock for Schengen and is 0.50 Swiss francs higher than in the previous year. part of the “Zurich 2010” project, which encompasses successfully undergoes re-certification by the FOCA. non-Schengen passengers. the implementation of the Schengen Agreement at Continued compliance with the standards and 10 June Zurich Airport and the centralisation of security checks. recommendations on operational safety issued by 29 January Zurich Airport is voted by 8.6 million passengers as the the International Civil Aviation Organisation (ICAO) Through its “A-port” joint venture, Flughafen Zürich AG best airport in Europe and the fourth best in the world. 13 August is assured. has a 51 percent stake in Hato International Airport in The Skytrax World Airport Award carries out worldwide The Federal Office of Civil Aviation (FOCA) submits the Curaçao and is now responsible for the management and surveys on quality in air travel. draft of the final report on the Civil Aviation Infrastructure 18 December operations of an airport which in 2009 sees some 1.5 Plan for Zurich Airport for consultation. Of the three The Federal Administrative Court essentially confirms million passengers pass through it. 12 June options remaining, the “J optimised” option turns out to current flight operations. In particular, it rejects Flughafen Zürich AG joins with other leading European be the best in terms of noise impact. applications to suspend flights arriving from the south 24 February air transport companies in signing 16 agreements in and stop the increased number of flights arriving from Flughafen Zürich AG launches a major development project, Brussels. The SESAR project is intended to create a 27 September the east, to limit the number of flight movements and “The Circle”. This is planned to be a high-quality service common European airspace independent of national As with the rejection of the 2007 initiative to restrict to extend the night-time curfew to over seven hours. facility covering some 200,000 m² of usable space at the borders. flight movements, Zurich's voters again take a stand for foot of the Butzenbüel, within walking distance of the their airport and firmly reject the Fairflug (“fair flight”) 29 December terminals. A public architecture competition gets underway, 12/13 June initiative. Flughafen Zürich AG executes the announced sale to its along with marketing efforts to potential tenants with “Railport 09”, a large-scale emergency drill, is carried strategic partner GVK Power & Infrastructure Ltd. large space needs. out successfully. Nearly 800 people participate in the 20 October (GVKPIL) of 12 percent of its total 17 percent holding in exercise. Travel agents around the world recognise Zurich Airport Bangalore International Airport Ltd. It will continue to 10 March with the World Travel Award for the sixth time in concentrate on its role as an airport operator in Bengaluru. Some 200,000 air passengers vote on the Airport Service succession, citing the airport's user-friendliness and Quality Award and choose Zurich Airport as the best high quality standards. airport in Europe. They appreciate the airport's outstanding quality of service, good atmosphere, cleanliness, transport connections and the friendliness of its staff. Globally, Zurich ranks second only to Taipei among airports with a passenger volume of between 15 and 25 million a year.

- 13 - Review & outlook | Customers & markets Review & outlook | Customers & markets

Zurich Airport is a transport hub and a major Commercial and services centre: more on offer and International business has become a major feature of Latin America: First successful acquisition by commercial and services centre in one. It not only the lowest vacancy rate ever Flughafen Zürich AG's strategy in recent years. Its “A-port” meets people's need for connections to the major The airport's activities represent an important source of emphasis is on successful, sustainable development At the end of January 2009, the “A-port” joint venture, cities of the world, but also caters to its guests' revenue for Flughafen Zürich AG and contribute the and professional operation of airports in growth consisting of the Brazilian Camargo Corrêa Group, well-being in every other way. largest part to overall profit. They focus on the affirmation markets. Flughafen Zürich AG and the Chilean company Gestion that “Every hour spent in Zurich Airport should be a e Ingenieria S.A. (IDC), concluded its first successful Transport hub: increase in volume of transfer positive experience”. The new fitness centre, which sets Swiss values such as punctuality, cleanliness and reliability joint acquisition. It acquired a 51 percent majority stake passengers the pulse of sports and fitness enthusiasts racing, is just are actively lived by Flughafen Zürich AG and are in the firm operating Hato International Airport on Zurich Airport is the starting point for flights to 121 as important in this respect as the conference centre in no less in demand abroad than expertise in combining Curaçao. Since the takeover, Flughafen Zürich AG has destinations in Europe and 57 intercontinental destinations. the Radisson Blu Hotel. The expansion of the conference commerce with state-of-the-art architecture and appointed the CEO and is assisting the operating The airport operator is striving to further develop facilities by an additional 1,800 m² of space means that operational efficiency in a medium-sized airport. Flughafen company with master planning, commercial and network Switzerland's and the Zurich area's connections to the Zurich Airport now offers the most extensive range Zürich AG has a stake in a total of ten airports abroad development, positioning, development of strategic most important cities and regions of the world. By of facilities for meetings and conferences anywhere in (see also page 40). Over the past year, Flughafen Zürich land reserves, business planning and quality management. adding new destinations like Denver and Algiers in 2009, Switzerland. Plus, Airport Shopping is one of the three AG has achieved significant milestones in India and Curaçao's international airport is frequented by some it again made progress towards achieving that goal. biggest shopping centres in Switzerland. The special Latin America. 1.5 million passengers every year and benefits from the As a hub, Zurich Airport is not the equal of Frankfurt or shopping experience it offers, amidst the fascinating world constant growth in the island's hotel industry, as well London in terms of size. But it nevertheless does not of flight, is open to customers 365 days a year. Ideal India: great potential in air travel as a flight network that provides equally good access to need to fear competition from larger European airports. transport connections and the constant flow of visitors India has an international reputation as one of the air North and South America and to Europe. On the contrary, its compactness and the high quality to the airport make it an attractive location for many travel markets set to expand most rapidly in response of its processes make it more efficient and enable it to retailers. Hence, over the past year new tenants were to a growing small and medium-sized business sector. achieve a minimum changeover time of under 40 acquired, completing the range of commercial offerings As more and more people need to travel, there will be minutes, which is outstanding by international comparison. in such areas as consumer electronics and quality greater demand for domestic and international flights and This is a particularly important consideration for transfer menswear. growing requirements for air transport infrastructure. passengers, whose number has again increased, by 3.2 As operator of Bengaluru International Airport, Flughafen percent in the year under review. Passengers in this An equally important element of the airport's role as Zürich AG has for some years now been helping in this category are essential if Switzerland is to continue to a commercial and services centre is the business development, and last year it achieved a further significant provide good access to European and intercontinental infrastructure it offers. The vacancy rate, at 3.2 percent, milestone in enhancing its position as an airport operator direct flights, for they are an important addition to local is remarkably low, and is a good indicator of the in India when it entered into a strategic alliance for the passengers and enable direct flights to operate economically. desirability of the properties within the Zurich Airport Indian sub-continent with GVK Power & Infrastructure Transfer passengers now account for 36.6 percent of the complex. Last year, Flughafen Zürich AG was able Ltd. (GVKPIL), a leading developer of infrastructure in India. total passengers passing through Zurich Airport. Other to conclude new leases on over 11,000 m² of space. Through this alliance Flughafen Zürich AG has set the no less significant reasons for choosing Zurich asan The biggest tenant, occupying over 5,200 m² of direction for the next stage of development in Bengaluru. airport include not only its closeness to the city but also its space, is Swiss Federal Railways (SBB), which is pooling If future airport expansions in India are to be tackled excellent road and rail connections. If Zurich Airport is to its management offices for the whole of Eastern successfully, there will be a fundamental need to play its part in serving the interests of the Swiss Switzerland on one central site here at Zurich Airport. systematically exploit synergies between a professional national economy, both today and in the future, then it Zurich's cantonal buildings insurer (GVZ) occupies infrastructure developer with strong local roots and an is vitally important that public and private means of some 2,900 m² of space, where it is setting up a call experienced, highly reputed international airport operator. transport are integrated and harmonised and the airport centre from which the staff of the Zurich Protection At the same time, GVKPIL has acquired the 12 percent is made as easily accessible as possible. and Rescue Services section (SRZ) will be able to handle share in the operating company Bangalore International emergency calls on 118 and 144 throughout the canton. Airport Ltd. (BIAL) sold by Flughafen Zürich AG in 2009. Another 750 m² is rented by the Federal Customs The residual 5 percent shareholding will enable Flughafen Administration and the border police. Zürich AG to continue to be represented on BIAL's Board of Directors and to continue discharging its responsibilities as an operator in the future.

- 15 - Review & outlook | Economic & social environment

Zurich Airport is of paramount importance to Minimising noise immissions wherever possible is a high affected by noise while maintaining current capacities. Both the Zurich Cantonal Council and the Cantonal Switzerland as a business location. It creates jobs priority for Flughafen Zürich AG, and is set to remain It is up to the federal government to take a decision as Parliament decided to declare the counterproposal and enhances the attractiveness of the surrounding that way. Admittedly, it will not be easy to reconcile the quickly as possible and so provide the airport and the partially invalid and only to submit the valid parts of the regions to business. In its capacity as airport operator, demand for mobility with the need for noise reduction in surrounding region with legal and planning certainty. The initiative to popular vote. The VFSN has submitted an Flughafen Zürich AG tries to reconcile its own the coming years. There are, however, a number of starting rapid population growth in the Glattal and Zurich areas appeal against this decision to the Federal Supreme commercial interests with the needs of the people points from which Zurich Airport can address the aircraft demonstrates the urgent need for timely spatial planning Court. No ruling has yet been made and it is thus still who live around the airport. noise issue. More on the subject of aircraft noise can be provisions. As regards the negotiations with Germany, not certain when the vote will take place. found in the section on environmental protection. the results of the jointly-conducted noise analysis showed Zurich Airport generates some 20 billion Swiss francs' that residents in the Upper Rhine region are not subject The extensive investigations conducted as part of the SIL worth of added value for Switzerland, a significant Sound insulation measures and noise compensation to any threshold values under German noise legislation process (Civil Aviation Infrastructure Plan) have shown contribution through which over 100,000 people earn Our sound insulation concept is a key measure for abating being exceeded. All the areas defined as protection that flight operations involving an increased number of their living either directly or indirectly. The presence of aircraft noise, second in importance only to the use of zones by German law are located in Switzerland. Here, landings from the east and take-offs towards the north the airport makes the surrounding region a very attractive quieter engines and the improvement of, and adherence too, it is now up to the Federal Council to conduct could reduce the number of persons who are exposed to location and helps in efforts to build up local economies. to, operating instructions. Sound-insulating windows negotiations with Germany with a view to finding a aircraft noise in excess of the tolerance limits. To Swiss science, culture, sport and tourism also benefit from provide local residents with passive protection against solution. increase the number of eastern flight approaches it would the presence of optimal connections with the rest of the the intrusive and harmful effects of aircraft noise. be necessary to extend the length of runway 28 from world. Hence, it follows that it is in everyone's interest that Owners of properties exposed to noise and which are Cantonal initiatives: Zurich's voters want an efficient its current 2,500 metres to around 2,950 metres. If the the whole Zurich hub system is protected in the longer located in a clearly defined area within the airport airport initiative is accepted by the electorate, the extension of term and made attractive to airlines. More than ever before, (“sound insulation perimeter”) have certain entitlements Flughafen Zürich AG is committed to finding ways of runway 28 would be blocked under current law. Zurich Airport has to compete with its European in respect of sound-insulating windows. Property operating that minimise the number of people affected counterparts. Coping with the future increase in the number owners who have already taken the initiative of fitting by noise. Zurich's electorate showed its support for this SESAR: comprehensive monitoring of air traffic of passengers will be a major challenge. One way in sound-insulating windows will over the coming years position last year when it rejected the “fair flight” initiative. Zurich Airport is also working for more efficient and which Flughafen Zürich AG is facing this challenge is by be reimbursed for their investment by Flughafen Zürich The voters agreed that the broad distribution of aircraft environmentally-friendly air transport at the European continually improving its processes, but this is not AG. Zurich Airport is obliged by law to fund these noise demanded by the initiative's proponents would have level. One of the biggest current projects in Europe is sufficient on its own. There is also a need for consensus protective measures. been disadvantageous not only to the airport itself SESAR - Single European Sky ATM (Air Traffic Management) in the regulatory sphere. Complex landing procedures but also to a large number of people living in the vicinity. Research - under which Flughafen Zürich AG is helping and restrictions on landings can jeopardise Zurich Airport's Subject to certain conditions, Flughafen Zürich AG also More-over, on 23 February 2009, the Cantonal Parliament to define and further develop new standards. The SESAR success and hence also Switzerland's desirability as a compensates property owners whose properties have firmly rejected the government initiative to restrict the project is intended to create a common European airspace business location. sustained losses in value because of aircraft noise. One number of flights to 320,000 per year and to impose independent of national borders. The airspace envisaged precondition for qualifying for noise-related compensation an 8-hour night-time curfew. in this project would be oriented solely on operational Aircraft noise: a polarising issue (formal expropriations) is that the immission levels laid requirements and would consequently make air travel in Ever since Zurich Airport commenced operations, down by the Federal Noise Abatement Ordinance are As of the end of 2009 the initiative put forward by these Europe safer, more efficient and hence more environmentally aircraft noise has been one of the major issues which has exceeded. Also, it must have been impossible to predict municipalities calling for a ban on the construction of friendly by 2020. Flughafen Zürich AG is contributing concerned and occupied the airport's management, the the aircraft noise when the property was purchased. new runways and on the expansion of existing ones was a total of around 4 million Swiss francs to this European people living around the airport, and politicians. Although Compensation is paid to owners of properties affected still pending. This initiative would require the Canton of project in the form of personnel resources. the number of flights has increased, Zurich Airport by low-flying aircraft, irrespective of these conditions. Zurich to actively oppose the construction of new runways causes significantly less noise than it did twenty years and the expansion of existing ones both at the federal Connections with local transport ago. The area over which the day-time noise limits are Spatial planning and negotiations with Germany level and at the level of the Board of Directors of Flughafen Zurich Airport's connections with rail and road transport exceeded has been reduced to one-third of what it was In order to be able to offer high-quality service in the Zürich AG. The Zurich Cantonal Council recommends are excellent and are considered among the best in the back then. A contributing factor in this has been the medium and long term, Flughafen Zürich AG requires that the initiative be rejected. On 23 February 2009, the world. Visitors can choose the means of transport they major improvements achieved in engine technology, which optimal political conditions. In the SIL process (Civil Cantonal Parliament resolved to support the initiative. want to use to reach the airport. More and more they has made aircraft engines quieter. Nevertheless, the Aviation Infrastructure Plan) and in negotiations with A referendum contesting the Cantonal Parliament's are taking advantage of the convenience offered by public controversy surrounding issues of aircraft noise is greater Germany, it proved possible over the past year to establish decision was launched by the conservative parliamentary transport. According to the most recent survey, conducted than ever. Hence, it is all the more crucial that all a technical framework with the potential of defusing the factions. At the same time an association opposing the last year, 46.2 percent of all the journeys people made interested parties continue to engage in dialogue and work political conflict concerning noise around Zurich Airport flight path from the south (“VFSN”) submitted a referendum to the airport were made using public transport. Zurich together as closely as possible within the established in the long term. The Civil Aviation Infrastructure Plan with a counterproposal which would require the Canton Airport and its partners are continuously making framework conditions. is the federal government's spatial planning instrument. to exercise its authority to prevent new flight paths (versus improvements that support and promote public transport In August last year, the FOCA published the draft of the the status of 2000) over densely populated areas and and thereby also make a valuable contribution to final report on the co-ordination of the SIL process. Of the to oppose the construction of high-speed taxiways. reducing CO emissions. ² three operating scenarios still subject to discussion, Flughafen Zürich AG favours the “J optimised” option. This option is based on the extension of runway 28 to the west, and it is significantly better than the other options in terms of reducing the number of persons

- 17 - Review & outlook | Economic & social environment

As an employer, Flughafen Zürich AG has a responsibility Training of apprentices and trainees Performance- and profit-related pay to society. The airport's employees play a vital part in Flughafen Zürich AG is actively involved in vocational The function-based system of evaluation introduced in its success. It is important to provide them with good training and offers young people a practice-based education. 2007 represents the foundation of a sustainable, forward- working conditions and a good working environment. In the current (2009/2010) training year, some 30 looking remuneration policy. All functions are evaluated For this reason the airport operator initiated and apprentices are being educated in six different fields; on the basis of uniform criteria. The evaluation system implemented a number of new programmes over the they represent slightly more than two percent of the provides a fair basis on which salaries can be determined past year. Training of its staff is regarded as a high approximately 1,500 staff. Flughafen Zürich AG has an and makes internal and external comparisons possible. It priority by the airport. interest in further developing the training programme by is intended to ensure that basic salaries are in line with creating additional apprenticeship positions and expanding the market and it comprises six function levels. Three Around 1,500 people, belonging to over 70 occupational the number of fields in which apprenticeships are offered. of these are management levels for which both fixed groups, are employed by Flughafen Zürich AG. This Every year, Flughafen Zürich AG also offers a number of and variable elements of remuneration apply. Central to diversity contributes to Flughafen Zürich AG and the trainee positions and in this way promotes co-operation our remuneration policy is the principle of equal companies operating at the airport being perceived with technical colleges and universities in Switzerland and remuneration (“equal pay for equal work”) which is part as attractive employers. The airport operator is well aware in neighbouring countries. In 2009, 22 students working of the employment contract. Flughafen Zürich AG’s that the efforts of the people who work at the airport in a variety of fields spent several months as trainees with comprehensive remuneration concept is an element of are the reason behind the many awards the airport has Flughafen Zürich AG. its corporate strategy and plays a part in attracting won, last year's good results and the success of the and retaining the best-qualified, most experienced and projects that have been carried out. Maintaining and Health management: a social responsibility most motivated staff. Flughafen Zürich AG bases its promoting the know-how present within the company Health management at Flughafen Zürich AG encompasses pay levels on the median rate on the market. is essential. Having a good work/life balance and promoting three different elements: health promotion, attendance/case good health help keep employees motivated. Even though management and occupational safety. Health promotion Social partnership the airport is in operation 365 days a year, part-time includes raising awareness of health risks and a range of In all matters concerning Flughafen Zürich AG's operations, employment and flexible working hours are encouraged health-related resources (ergonomic workstations, sports both the employer and the staff representation council wherever possible. Today, one-third of Flughafen Zürich facilities, etc.). Attendance and case management is (PeV) work closely together. The participation of the staff AG's staff – 480 employees in all (290 women and 190 concerned with the systematic analysis of instances of representation council has a direct effect on those who men) – are employed on part-time contracts. longterm absences or frequent short-term absences to work for Flughafen Zürich AG and it is a key feature in how enable appropriate early intervention to reduce the likelihood the employer/employee relationship works. Both the Personnel development of disability or early retirement on health grounds. It is Management Board and line managers acknowledge the Well-trained, professional managers and staff are crucial pleasing to note that active health management over the importance of the staff representa-tives' work to the to Flughafen Zürich AG's success, and actively implementing past three years has already brought about a marked social partnership. The council's rights of participation our personnel development concept plays a significant reduction in the absentee rate. Last year, case management are set out in a staff participation agreement. Depending part in developing the staff we need. Leadership training is made it possible for 13 members of staff to be reintegrated on the situation, the PeV is entitled to be informed or a key element here, with the main focus on the development into working life. consulted or to share in any decisions taken. The forums of the personal, social and methodological skills that are in which the formal process of employer-employee co- such an important feature of the company's culture. A determination takes place are the joint participation variety of seminars and workshops are also on offer, and committee, which meets every two months, and regular both management and staff make use of them. meetings of the Management Board and staff representatives.

- 19 - Review & outlook | Quality & innovation management

Zurich Airport stands for progress and perfection Punctuality rate High level of availability of information and commu- Centralised security checks: more comfort for combined in a small but efficient space. The airport The punctuality of departures is one of the most important nications technology (ICT) infrastructures passengers operator puts its strategy of constantly guaranteeing indicators of an airport's quality. Delays not only cost Critical IT systems such as the network, radio systems, Rigorous security checks are vital for passengers' safety. the highest quality into practice by making continual money but also make passengers' journeys less comfortable. telephones, AODB (Airport Operational Database) and The airport operator is endeavouring to continually improvements, both to the transport hub and to the The short distances at Zurich Airport have a decisive FIDS (Flight Information Display System) were available improve both waiting times and the efficiency of security services not related to aviation. For instance, in 2009 effect on punctuality, in that they make rapid transfers to the airport all year without interruption. This was checks. The centralisation of security checks at Zurich it also launched projects that will not only help make possible, as do the airport's well-functioning processes. achieved primarily by means of innovative and robust Airport will bring a marked improvement in security check Zurich Airport more competitive, but will also strengthen In day-to-day flight operations, practically all decisions technologies combined with good preventive maintenance. procedures. Security check functions will be concentrated Switzerland as a business location. automatically affect everyone else concerned, and in Over the past year, Zurich Airport replaced its old operating in a new four-storey building located between check-in recognition of this fact Zurich Airport introduced Airport system with Windows 7 in order to be able to maintain and the entrance to the airside area. Waiting times Zurich Airport performs tasks of national importance Steering in 2003. Since that date, everyone whose input this high standard. At the same time, the decision was during checks will be reduced, allowing passengers more by fulfilling its role as a transport hub at all times and has a decisive impact on punctuality has a seat in a shared taken to distribute software in a new and innovative way time to enjoy the airport's extensive shopping opportu- guaranteeing the highest levels of quality and safety. open-plan office. This enables them to respond rapidly by means of application virtualisation, which makes the nities and range of food and beverages. In the second half In 2009, Zurich Airport improved the punctuality of to changes in air traffic conditions. In 2009, Zurich Airport systems even more stable. This new ICT architecture of 2009, Flughafen Zürich AG dismantled the old buil- departures and was voted “Best Airport in Europe” also introduced “pre-boarding zones”, which allow represents a quantum leap in the modern ICT landscape. ding. Construction work on the new multi-storey building twice over. The main criterion of top quality was Zurich passengers to pass through the gate even if the aircraft Zurich Airport is the first airport in the world to successfully is scheduled to start in early 2010. Airport's ability to make transfers possible within 40 has not yet arrived. Thanks to these measures Zurich's test and roll out architecture of this kind. minutes and less – in which it is a world leader. Other departure punctuality continually improved, reaching factors that contributed to Zurich Airport's winning of 81.9 percent in 2009, which was 4.6 percentage points New Dock B: more flexibility in handling these awards were its pleasant atmosphere, cleanliness, above the target for the year of 77.3 percent. Maintaining Following the implementation of the Schengen Agreement first-rate transport connections and the friendliness of that record in the future will be a major challenge, at the end of March 2009, travellers at Zurich Airport its staff. These are values that Zurich Airport wants to especially because Zurich Airport cannot be operated are strictly divided into Schengen and non-Schengen uphold. According to a study commissioned by the optimally under the restrictions imposed by the passengers. In order to comply with the Schengen federal government, the number of passengers passing German unilateral ordinance. Agreement's requirements on passenger infrastructure, through Zurich Airport could double by 2030. Such Zurich Airport launched the “Zurich 2010” project a development will demand far-sighted planning High degree of availability of technical infrastructure several years ago. As the Schengen Agreement creates of capacities by the airport operator and consistent Last year's results were also outstanding in terms of the additional complexity and calls for enhanced gate improvements in efficiency. In the face of greater technical availability of infrastructure such as Skymetro, capacity, the project also aimed to compensate for losses competition, Zurich Airport cannot afford traffic escalators and passenger ramps. This is attributable to the in capacity by means of clearer routes through the bottlenecks. And, as demand grows, so will the need clear focus of Zurich Airport's maintenance strategy, airport and more rapid procedures. Key elements in this to prevent increases in noise and CO emissions. The which the airport has implemented for several years now. were centralised security checks and the new Dock B, ² intention behind projects such as “Zurich 2010” in The most important items of infrastructure are managed which is an icon of Zurich Airport's operational efficiency. which 430 million Swiss francs have been invested, is by well-practised teams and a high standard of service is Airlines will benefit from flexible handling of Schengen that they should enable Zurich Airport to sustain ensured for them through an agreement with Airport and non Schengen flights at up to nine docking bays and growth by improving its processes. Steering. This has, of course, positively influenced the eight non Schengen bus gates, while passengers will punctuality of flights departing from Zurich Airport. enjoy the attractive gate waiting areas in a light-filled, friendly atmosphere similar to that of the present-day Airside Center. Since the removal of the old Dock B last year, construction work on the new facilities has been going at full tilt. The new Dock B should be ready for passengers, airlines and visitors in late 2011.

- 21 - Review & outlook | Quality & innovation management

Tobias Markert is the project manager of ZA: What could have gone wrong on the Schengen front? no longer quite so fundamental, but the details are still “Zürich 2010”. In this interview he offers a glimpse important, of course; for example, there are questions behind the scenes. TM: In the night before the opening, dozens of signs for about which areas should be used for eating and shopping the passenger corridors had to be rehung. If we hadn't or how many Internet terminals there need to be in the managed that, the next day would have been absolute dock. Zurich Airport: Mr Markert, what is your working day like? chaos. The changeover on the Skymetro was just as tricky; it's the transport artery to Dock E and has to move Tobias Markert: My role has changed considerably as 1,800 people every morning between half-past six and In the future, airlines will be the “Zurich 2010” project has progressed. At first, it was seven o'clock alone. As a stop-gap measure, we had to all about devising a concept for implementing Schengen deploy buses during the renovation work. able to further reduce and centralising security checks at the airport. Then there were orders for the various sub-projects to be put the time their aircraft spend together, and the cost-effectiveness of the whole project ZA: Must the new Dock B also increase capacity? needed to be secured. At present, the main thing I do on the ground. is co-ordinate. Basically, my day is full of meetings. On TM: No. With the new Dock B, enhancing quality is the the building sites themselves I put in more of a guest main goal. Until now, passengers often had to be driven to appearance; there it's the construction project managers their planes by bus. Surveys showed, though, that people ZA: Dock B is glass-fronted. Isn't that bad for energy who are the experts. always associated top quality with the ability to get to a consumption? plane directly from a dock. Dock B is going to enable us to make that possible for even more passengers. At first TM: No. What we're going to do is install what's called a With the new Dock B, this may seem a cost-intensive solution for Zurich Airport, “weather buffer”, which is what we did with Dock E. but we're certain it will put us in a stronger position in the What that means is that the dock is built with two shells, enhancing quality is the market. an inner and an outer one, with a corridor between them. The heating and cooling systems affect only the inner shell, clear focus. so not much heat is lost in the winter and there isn't ZA: What other competitive advantages will this bring? much need for cooling in the summer. This ensures that energy consumption is kept to a minimum. ZA: Schengen has made things more complicated for Zurich TM: The airlines will be able to benefit from two departure Airport. Has it also presented opportunities? levels, one for Schengen and the other for non-Schengen passengers. If, for example, an aircraft arrives from a ZA: What are you looking forward to most about the new TM: Absolutely. It would be a shame to look only for the Schengen country, it can stay at the same stand for the Dock B? bad bits of Schengen. The fact is that it made for real changeover to a non-Schengen flight. This represents a gains in terms of quality for passengers. Travelling has significant enhancement of flexibility and lets us make TM: Being close to the action on the aprons and runways. become simpler. If passengers are transferring within optimum use of stands. It means that the airlines can What's going to be special about it is that the waiting the Schengen area, there's no more passport check for reduce still further the time their aircraft spend on room on the lower floor is going to be on the same level them and no security check either. They get more time the ground and at the same time benefit from the comfort as the aircraft. Passengers will be able to see the body to enjoy all the things the airport has to offer. afforded by a stand right next to a dock. of the aircraft only a few metres away and watch the airport personnel at work. There are hardly any other airports where you can do that. ZA: What has been the biggest challenge to “Zurich 2010”? ZA: What issues made for the liveliest discussion when planning Dock B? TM: The biggest thing to be cracked is the complexity of ZA: Did you find any of this an emotional experience? the projects and the fact that we can't do a test run. The TM: This varied a great deal depending on what stage the building work is going on while the airport is in operation. project was at. Without a doubt, the most important TM: Yes, many times. One occasion was the The changeover is taking place during the night and issues had to be sorted out right at the start. First of all, ground-breaking ceremony for the “Zurich 2010” project: everything has to work from the word go. Despite the there was the fundamental decision as to whether the that was when the project became a tangible reality, and rebuilding work, 50,000 passengers a day are relying implementation of Schengen meant that Dock B needed so it was an overwhelming moment. I was also surprised on smooth and problem-free service. What was no less to be recommissioned at all or whether we should go for to see how deeply moved people were when we had to problematic was the fact that for some time the exact a cheaper option with bus gates instead. As the costs of close the observation deck on the old Dock B. I can offer date for the implementation of the Schengen agreement the two options differed by several million Swiss francs, them some consolation, though, as they will ultimately wasn't known and we had to plan for scenarios in which the decision was understandably not an easy one. The enjoy the new observation deck even more. With a roof a number of factors were provisional. design of the building then had to be sorted out. Should and a weatherproof visitors space, plane spotters will it be fully flexible between Schengen and non-Schengen? be able to enjoy the view even when it's raining. Until then, Tobias Markert Should it have one or more floors? Built-in bus gates? there's the observation deck on Dock E, which is situated Project manager Should it have an observation deck or not? Here, too, the right in the middle of all the aviation activity and makes airport went for a high-quality solution. These issues are for a very appealing alternative. - 23 - Review & outlook | Quality & innovation management Review & outlook | Communication & partnership

In the future, Zurich Airport is going to be relying “The Circle” will comprise some 200,000 square metres Zurich Airport's success depends to a large degree Public affairs and corporate communication more on sources of income unrelated to aviation. of useable space. Around a billion Swiss francs will be on clear brand management and honest and transparent Flughafen Zürich AG attaches great importance to open In the services field in particular there is a lot of invested in it over the coming years, and construction communication. However, the airport operator and transparent communication. This means not only potential for growth. work is expected to start in 2012. also recognised early on the importance of strategic providing accurate information quickly, but in particular partnerships and dialogue in the political sphere. also cultivating a dialogue with partners, representatives At the airport, both passengers and companies are Fitness and wellness oasis: off to a good start of the media, staff, neighbours, the public at large and the tending to look more for services that go beyond just In a survey of airport employees and nearby residents, As a brand, “Flughafen Zürich AG” makes full use of authorities. This is critical, especially when it comes shopping. Because of the excellent access for both people said they would like to see a comprehensive range its exclusive position as a gateway to the world and to the to working together to deal with particularly difficult or private and public transport, the airport is an ideal place of health and wellness facilities on offer. In November Alps and distinguishes itself through entrepreneurial controversial issues. In order to successfully perform the for bringing people and services together. In order to last year, they got their wish, when the region's biggest thinking and action. The recent adoption of the single-brand operating mandate awarded by the federal government, benefit from this market trend, Zurich Airport is seeking fitness centre opened its doors. Operated by Thermalbad strategy followed a major development in the operating Flughafen Zürich AG is greatly dependent on political to get visitors to spend more time in it by establishing Zurzach AG, it is located on the basement level of the company's business history. In 2000, “Flughafen Immobilien circumstances. It frequently has to face attempts to influence itself more and more as a platform for services. Projects Radisson Blu Airport Hotel and offers a full range of Gesellschaft (FIG)” and “Flughafendirektion Zürich or change these conditions in the form of initiatives and such as “The Circle” and the expansion of the current fitness equipment, plus saunas, steam baths, a power-plate (FDZ)” merged to become “Flughafen Zürich AG”. The parliamentary motions, particularly with respect to the commercial facilities also promise valuable market centre and a centre for traditional Chinese medicine. newly-created “Unique” brand was intended to help SIL process (Civil Aviation Infrastructure Plan) and opportunities. unify and position the young, exchange-listed company the formulation of definitive operating regulations. The Conferences: doing business at the heart of Europe as a new entity, while underscoring the uniqueness of objective is to protect specific regional interests “The Circle” Business people would much rather meet in a central Zurich Airport to the world beyond Switzerland. Over and improve legal and planning security for the general “The Circle” is a major project that was unveiled in February location to discuss urgent matters. To meet this growing the years, though, it became evident that the “Unique” population as well as for the airport operator. As part 2009 in conjunction with an international architecture demand, the Radisson Blu signed a contract last year brand sometimes gave rise to misunderstandings. The of its political communication activities, Flughafen Zürich competition aimed at deciding not only the concept for with Zurich Airport for an additional 1,800 m² of space, management of two brands is also labour-intensive and AG is focusing on increasing awareness among the the building but also choosing a team of architects. The almost doubling the capacity of the hotel's meeting expensive. As Flughafen Zürich AG has now established public and in the political arena about the interdependencies competition is now closed and the winner is the “Riken and conference facilities. The hotel now has a total of 23 itself, the Board of Directors and the Management between the economy and civil aviation, and on promoting Yamamoto & Field Shop” team of architects from Yokohama meeting rooms, four boardrooms, a video conferencing Board agreed last year to operate under a single name, understanding for the stances of the corporate players (Japan). In a subsequent phase, the winning project design room, guest rooms, executive dayrooms and a direct link “Flughafen Zürich AG”. Hand in hand with this step went involved. This is an ambitious but realisable goal, and is being further developed as part of a preliminary study to Zurich Airport's multi-storey car park 1, which means the adoption of a new corporate design. The uniqueness Flughafen Zürich AG is strongly committed to achieving in order to factor in the building owner's clearlydefined that it can offer the most extensive range of resources for that the “Unique” brand was meant to embody is now it. For this purpose it depends on support from its requirements – particularly the fulfilment of all specifications meetings and conferences anywhere in Switzerland. inherent in the new brand, which also reflects the strengths partners and all other players who share the goal of in terms of cost effectiveness, design and functionality. The of Zurich as an economic area and a place to live, as securing a strong civil aviation sector for Switzerland. design submitted by “Riken Yamamoto & Field Shop” well as such prime attributes of Swiss success as reliability, combines Swiss discretion and a high quality setting in safety and cleanliness. The brand also embodies a Strategic partnerships the form of an intricate, city-centre atmosphere. These first-class touch in comparison with the world's other Flughafen Zürich AG sees partnerships with such bodies foundations allow individual tenants to be featured with major hubs. The roll-out of the company's new brand as Switzerland Tourism, Zurich Tourism, Swiss and the their own address in a large complex of buildings. The will take place in stages and will be completed by the end Swiss Transport Museum as being strategically important. design also allows a great deal of flexibility in terms of the of 2010. It is thanks to these partnerships with bodies that provide lifetime of the buildings. a range of top-quality services to one another that Zurich Airport has been able to position and market itself With “The Circle”, situated at the foot of the Butzenbüel successfully and effectively. The partnership with Swiss hill, Zurich Airport is setting standards for airport-based Federal Railways (SBB) was enhanced even further over service and commercial centres. This future Swiss version the past year, and the SBB now figures among the major of an “Airport City” will be a premium address for service tenants at Zurich Airport. providers from around the world and the surrounding region, bringing together a large variety of appealing facilities ranging from medical services to education and culture and more. Every module in the project will offer a coherent range of commercial and service resources along with marketing platforms, hotel accommodation and office space, and the different modules will inter-relate and complement each other in multi-faceted ways. The result will be a destination offering a high-quality setting for visitors to the airport, the Zurich region, Switzerland and the Alps.

- 25 - Flugzeugenteisung

Anfahrtsplan Flughafen Zürich

Gates E

E

Gates A

Gates B

Place: Center Bar Zurich Airport Time: 12.30 p.m. Name: Yael Morat Job: Managing DirectorTankstelle Zentrify AG

- 27 - Business & traffic trends | Key data (2-year comparison)

Key data Key data excluding the influence of aircraft noise1) Amounts in accordance with International Financial Reporting Standards (IFRS) The following key data are shown excluding the influence of aircraft noise:

(CHF 1,000) 2009 2008 Change in % (CHF 1,000) 2009 2008 Change in % Total revenue 820,207 855,103 –4.1 Total revenue 792,606 812,998 –2.5 of which revenue from aviation operations 505,092 525,689 –3.9 of which revenue from aviation operations 472,824 479,253 –1.3 of which revenue from non-aviation operations 315,115 329,414 –4.3 of which revenue from non-aviation operations 319,782 333,745 –4.2 Operating expenses 417,973 434,862 –3.9 Operating expenses 417,973 434,862 –3.9

Earnings before interest, tax, depreciation and amortisation (EBITDA) 402,234 420,241 –4.3 Earnings before interest, tax, depreciation and amortisation (EBITDA) 374,633 378,136 –0.9 EBITDA margin (in %) 49.0 49.1 EBITDA margin (in %) 47.3 46.5 Earnings before interest and tax (EBIT) 213,156 234,073 –8.9 Earnings before interest and tax (EBIT) 191,189 194,787 –1.8 EBIT margin (in %) 26.0 27.4 EBIT margin (in %) 24.1 24.0 Profit 190,610 121,314 57.1 Profit 176,653 100,613 75.6 Profit (excl. gain on disposal of BIAL) 1) 114,853 121,314 –5.3 Profit (excl. gain on disposal of BIAL) 2) 100,896 100,613 0.3

Cash flow from operations 350,933 415,102 –15.5 Cash flow from operations 324,870 379,760 –14.5 Cash flow from investing activities 134,437 258,849 –48.1 Cash flow from investing activities 94,418 252,512 –62.6

Invested capital as of 31 December 2,846,535 2,660,769 7.0 Invested capital as of 31 December 2,705,096 2,533,288 6.8 Ø capital employed 2,753,652 2,637,669 4.4 Ø capital employed 2,619,192 2,520,539 3.9 Return on Ø capital employed (ROCE, in %) 6.2 7.1 Return on Ø capital employed (ROCE in %) 5.8 6.1 Equity as of 31 December 1,598,411 1,428,935 11.9 Equity as of 31 December 1,456,974 1,301,454 11.9 Return on equity (in %) 12.6 8.7 Return on equity (in %) 12.8 7.8 Return on equity (in %, excl. net gain on disposal of BIAL) 1) 7.6 8.7 Return on equity (in % excluding net gain on disposal of BIAL) 2) 7.3 7.8 Equity ratio (in %) 44.9 42.5 Equity ratio (in %) 46.5 44.0

Interest-bearing liabilities (net) 838,175 1,019,008 –17.7 Interest-bearing liabilities (net) 1,023,444 1,180,170 –13.3 Interest-bearing liabilities/EBITDA 2.08x 2.42x Interest-bearing liabilities /EBITDA 2.73x 3.12x

Key operational data Key operational data Number of passengers 21,926,872 22,099,233 –0.8 Number of passengers 21,926,872 22,099,233 –0.8 Number of flight movements 262,121 274,991 –4.7 Number of flight movements 262,121 274,991 –4.7 Freight in tonnes 344,415 387,671 –11.2 Freight in tonnes 344,415 387,671 –11.2 Number of full-time positions as of 31 December 1,302 1,254 3.8 Number of full-time positions as of 31 December 1,290 1,243 3.7 Number of employees as of 31 December 1,549 1,482 4.5 Number of employees as of 31 December 1,537 1,471 4.5

Key data for shareholders Key data for shareholders Number of issued shares 6,140,375 6,140,375 Number of issued shares 6,140,375 6,140,375 Proposed/paid dividend per share (in Swiss francs) 2) 7.50 5.00 50.0 Proposed/paid dividend per share (in Swiss francs) 3) 7.50 5.00 50.0 Dividend total (in thousand Swiss francs) 46,053 30,702 50.0 Dividend total (in thousand Swiss francs) 46,053 30,702 50.0 Payout ratio (in %) 24.2 25.3 Payout ratio (in %) 26.1 30.5 Capital per share (in Swiss francs) 260.31 232.71 11.9 Capital per share (in Swiss francs) 237.28 211.95 11.9 Basic earnings per share (in Swiss francs) 31.20 19.78 57.8 Basic earnings per share (in Swiss francs) 28.92 16.41 76.2 Diluted earnings per share (in Swiss francs) 31.18 19.77 57.7 Diluted earnings per share (in Swiss francs) 28.90 16.39 76.3

Share price (in Swiss francs) Share price (in Swiss francs) – High 339.00 486.00 –30.2 – High 339.00 486.00 –30.2 – Low 198.00 242.60 –18.4 – Low 198.00 242.60 –18.4

Security number SIX Symbol Reuters 1) The reported key data excluding the influence of aircraft noise were adjusted for all significant positions relating to aircraft noise in the income statement and balance sheet. In the Flughafen Zürich AG (registered share) 1056796 UZAN UZAZn.S income statement, these positions are noise charges, noise-related operating expenses, amortisation of the intangible asset from right of formal expropriation, noise-related financial expenses and financial income, and the tax effects arising from these adjustments. In the balance sheet all the significant noise-related asset and liability positions have been eliminated. 1) Amount/ratio excluding the net gain (after tax and transaction costs) in the amount of 75.8 million Swiss francs resulting from the disposal of 12 percent of the shares of Bangalore 2) Amount/ratio excluding the net gain (after tax and transaction costs) in the amount of 75.8 million Swiss francs resulting from the disposal of 12 percent of the shares of Bangalore International Airport Ltd. (BIAL) in 2009. International Airport Ltd. (BIAL) in 2009. 2) Ordinary dividend of 5.00 Swiss francs and special dividend (from proceeds of partial disposal of BIAL) of 2.50 Swiss francs in 2009. 3) Ordinary dividend of 5.00 Swiss francs and special dividend (from proceeds of partial disposal of BIAL) of 2.50 Swiss francs in 2009.

- 29 - Business & traffic trends | Trend in traffic volume

The traffic volume in Zurich fell versus the prior year by 0.2 million scheduled and charter passengers per flight rose from 95 to 98. The Trend in passenger volume (in million) Flight movements (in 1,000) passengers, or 0.8 percent, to 21.9 million passengers. This means average number of seats per flight increased from 136 to 138. The that Zurich was well above the European average of minus 5.9 percent average seat load factor rose by 1 percentage point, from 70.6 to 71.6 25 300 275.0 (source: ACI, Airports Council International). Since the middle of percent. 268.5 22.1 21.9 267.4 262.1 0.02 260.8 2009 this negative trend has been reversed, and the passenger growth 20.7 0.04 0.05 250 in the second half of the year alone reached 2.0 percent. While the The volume of air freight fell by 11.2 percent to 344,415 tonnes. The 20 19.2 37.4 40.4 44.7 43.2 38.8 0.1 6.2 17.9 12.5 8.0 4.5 volume of local passengers decreased by 3.0 percent for the full year, volume of substitute air freight transported by road fell more sharply 0.08 9.7 7.0 7.8 8.0 200 the number of transfer passengers who use Zurich Airport as a hub (minus 12.3 percent) than that of air freight (minus 10.7 percent). 5.3 6.1 rose by 3.2 percent. The proportion of transfer passengers reached 36.6 15 percent by the end of 2009. The 1.4 percent increase versus the prior In the year under review, 65 airlines offered scheduled services to 150 year indicates a further strengthening of Zurich as a hub airport. The 121 European and 57 intercontinental destinations. While the number 10 217.5 210.6 215.8 225.5 218.8 strong passenger growth reported by Swiss, Emirates, easyJet and of intercontinental destinations decreased by two, the number of 100 Aer Lingus was not sufficient to fully compensate the decline in the European destinations rose by six. Despite difficult economic conditions, 12.5 12.9 13.6 14.3 13.8 5 General aviation and traffic volume of other airlines. Hub carrier Swiss was able to a variety of new airlines began to fly to Zurich Airport, such as Transit passengers 50 strengthen its market position in 2009 and thus again increase its Armavia, Air Seychelles, Tarom and Belle Air. other tra c Transfer passengers Charter market share (based on passenger figures) from 57 to 59 percent. 0 Local passengers 0 Scheduled The trend in low-cost air travel was slightly negative in Zurich at minus 2005 2006 2007 2008 2009 0.7 percent for the full year. The proportion of low-cost operations 2005 2006 2007 2008 2009 rose slightly from 10.2 to 10.3 percent.

In the year under review, the total number of flight movements fell by 4.7 percent to 262,121. The decrease in the scheduled and charter flights segment was 3.6 percent, and flight movements in the general aviation segment fell by 10.3 percent. The average number of Freight (in 1,000 tonnes) Airlines & destinations

400 387.7 Number of airlines 2009 2008 372.4 374.3 363.3 Scheduled flights 65 67 344.4 350 Charter flights 13 22 106.0 106.3 109.6 111.3 97.7 300 Destinations, scheduled flights (cities) Europe 121 115 250 Africa 20 21 200 Asia 18 19 North America 13 13 150 Latin America 6 6 266.4 257.1 264.6 276.3 246.8 Total 178 174 100 Destinations, scheduled flights (countries) 50 Road transport Europe 36 34 Africa 9 10 0 Air transport Asia 15 14 2005 2006 2007 2008 2009 North America 2 2 Latin America 5 5 Total 67 65

- 31 - Business & traffic trends | Trend in traffic volume Business & traffic trends | Total revenue & earnings trend

Passengers at European airports (in million) Comments on the result

80 Total revenue and earnings trend Total revenue fell by 4.1 percent versus the prior year from 855.1 million to 820.2 million Swiss francs.

70 66.9 65.9

60.6 Approximately 62 percent of the total revenue came from aviation operations, namely 505.1 million Swiss francs (minus 3.9 percent) in the 60 57.8

53.2 year under review. 50.6 50.5 47.9 50 47.4 43.5 40 34.8 34.5 34.2 (CHF 1,000) 2009 2008 Change in % 33.4 32.6 32.4

30.2 Passenger fees 173,044 176,807 –2.1 27.3

30 26.2 25.1

23.4 Security fees 140,298 142,127 –1.3 22.8 22.3 22.1 21.9 21.4 21.2 20.5 19.9 20 19.6 Landing fees 77,453 79,630 –2.7 Noise charges 32,268 46,436 –30.5 10 Baggage sorting and handling system 26,150 26,383 –0.9 2009 Aircraft energy supply system 10,483 11,300 –7.2 0 2008 Freight revenue 6,999 7,755 –9.7 Fuel charges 6,352 6,549 –3.0 Parking fees 5,790 5,088 13.8 Zurich Dublin Madrid Munich CUTE charges (check-in system for handling agents) 4,113 4,138 –0.6 Frankfurt Paris Orly Paris Barcelona Emission fees 2,916 3,042 –4.1 Amsterdam Copenhagen PRM fees 1,707 0 n/a Rome Fiumicino London Gatwick London

London Stansted London Refund of security costs 1,395 1,435 –2.8 London Heathrow London Palma de Mallorca Palma Bad debt write-offs –100 –271 –63.1

Paris Charles de Gaulle Paris Other earnings 16,224 15,270 6.2 Total revenue from aviation operations 505,092 525,689 –3.9

Commercial movements at European airports (in 1,000) Revenue from passenger fees fell by 2.1 percent to 173.0 million Revenue from noise charges comprises passenger noise charges, Swiss francs. This was slightly more than the decrease in passenger noise-related landing charges and offpeak night-time surcharges. In 600 volume (minus 0.8 percent). The reason for this is the stronger accordance with an agreement between the Canton of Zurich and

551.2 decline in local passengers, who pay a higher charge than transfer Flughafen Zürich AG, since 1 July 2008 revenue from noise charges 518.0 passengers. has been split for the purpose of financing compensation for formal 473.8

500 473.1 468.4 460.0 452.4 expropriations. 53 percent of the revenue from noise charges goes to 434.0 428.3

408.3 Revenue from security fees fell by 1.3 percent in the year under Flughafen Zürich AG and the remaining 47 percent to the Canton of 391.3 400 376.8 review. This decrease, which is also disproportionate to the decline Zurich. In 2009, this revenue split became effective for a full financial 340.7 318.9 318.5 in passenger volume, is (like the decline in passenger fees) also year for the first time, and this is the main reason for the decline in

300 276.4 264.0

260.4 attributable to the sharper drop in local passengers. revenue by 30.5 percent. 252.5 241.4 240.5 235.8 230.2 229.7 228.7 220.6 214.1 221.9 211.0 202.9 200 Revenue from landing fees decreased to 77.5 million Swiss francs On 1 November 2009 a new fee to assist passengers with reduced (minus 2.7 percent). The main reason for this trend was the 4.7 mobility (PRM fee) was introduced. This fee is used to refinance the 100 percent drop in flight movements. The 1.5 percent increase in the costs incurred in connection with assisting passengers with reduced 2009 average maximum take-off weight (MTOW) at Zurich Airport mobility. In autumn 2009, Flughafen Zürich AG authorised Careport 0 2008 slightly compensated the decline in passenger fees. AG to perform this service at Zurich Airport. Oslo Zurich Vienna Madrid Munich Brussels Frankfurt Paris Orly Paris Barcelona Amsterdam Duesseldorf Copenhagen Rome Fiumicino Rome London Heathrow London Paris Charles de Gaulle Charles Paris

- 33 - Business & traffic trends | Total revenue & earnings trend

Revenue from non-aviation operations fell from 329.4 million Swiss francs to 315.1 million (minus 4.3 percent) and thus accounted Operating expenses fell in the year under review by 434.9 million Swissair liquidator (“other expenses/income, net”). Without this for around 38 percent of total revenue. Swiss francs (minus 3.9 percent) to 418.0 million. In 2008, operating effect, operating expenses rose slightly (plus 1.1 percent) in 2009 expenses included the payment of 21.5 million Swiss francs to the versus the prior year.

(CHF 1,000) 2009 2008 Change in % Retail outlets and duty-free shops 71,562 79,493 –10.0 (CHF 1,000) 2009 2008 Change in % Revenue from multi-storey car parks 61,959 64,407 –3.8 Personnel expenses 158,416 152,394 4.0 Advertising media and promotion 13,112 12,886 1.8 Police and security 113,458 113,016 0.4 Other licence revenue (car rentals, taxis, banks, etc.) 12,222 12,859 –5.0 Maintenance and material 40,697 43,907 –7.3 Food and beverage operations 11,215 11,405 –1.7 Energy and waste 24,553 25,015 –1.8 Commercial revenue 170,070 181,050 –6.1 Other operating expenses 40,181 36,057 11.4 Revenue from rental and leasing agreements 85,589 82,144 4.2 Sales, marketing, administration 38,175 41,575 –8.2 Energy and incidental cost allocation 26,066 25,487 2.3 Other expenses/income, net 2,493 22,898 –89.1 Cleaning 3,591 3,511 2.3 Total operating expenses 417,973 434,862 –3.9 Other service revenue 2,118 5,497 –61.5 Trade fairs and events 0 314 n/a Revenue from facility management 117,364 116,953 0.4 Personnel expenses account for approximately 38 percent of the total operating expenses. In the year under review, these rose by 4.0 percent Communication services 13,250 12,988 2.0 Other services and miscellaneous 7,338 9,163 –19.9 to 158.4 million Swiss francs. Conference Center 152 3,050 –95.0 Capitalised expenditure 7,085 6,275 12.9 The table below lists the main factors contributing to these higher personnel expenses: Bad debt write-offs –144 –65 121.5 Revenue from services 27,681 31,411 –11.9 Total revenue from non-aviation operations 315,115 329,414 –4.3 (CHF million) 2009 Personnel expenses in 2008 152.4 Decrease in provisions for holidays and overtime approx. –2.2 Turnover-based revenue in the retail, duty free and food & beverage the weaker consumer sentiment, the main reasons for this decline Insourcing of operation and maintenance of various systems (2009 first full year of operation) approx. 2.1 Adjustment of basic salaries approx. 3.0 operations fell by 8.9 percent in the year under review. This was were the revaluation of the Swiss franc and the temporary closure of Costs associated with hiring of additional personnel approx. 2.1 attributable to lower sales figures for shops and restaurants, which sales outlets associated with the Zurich 2010 project. However, the Higher variable salary components based on the annual result (management) approx. 1.1 fell by 4.7 percent from 481.1 million Swiss francs to 458.7 million. average expenditure per departing passenger at Zurich Airport is still Special bonus for personnel without variable salary component approx. 0.8 In the year under review, the average expenditure per departing high in an international comparison. Miscellaneous (personnel recruitment, further education) approx. –0.9 passenger was 41.84 Swiss francs (minus 3.9 percent). Alongside Personnel expenses in 2009 158.4

(CHF million) 2009 2008 Change in % As of 31 December 2009, Flughafen Zürich AG employed 1,549 staff (2008: 1,482), who filled 1,302 equivalent full-time jobs (2008: 1,254). Trend in revenue of commercial partners 458.7 481.1 –4.7 Commercial revenue of Flughafen Zürich AG Retail outlets and duty-free shops 71.6 79.5 –10.0 The table below depicts the development of costs for police and security: Food and beverage operations 11.2 11.4 –1.7 Average revenue per departing passenger (in CHF) 41.84 43.54 –3.9

(CHF 1,000) 2009 2008 Change in % Parking revenue totalled 62.0 million Swiss francs (minus 3.8 incidental costs developed positively versus the prior year, increasing Zurich cantonal police force 92,814 91,384 1.6 percent) in the year under review. This decline is attributable to the by 0.6 million Swiss francs (plus 2.3 percent). Increased consumption Security expenses relating to third parties 20,644 21,632 –4.6 lower number of local passengers and the mode of transportation over the winter of 2008/2009 and a pleasing trend with respect Total police and security expenses 113,458 113,016 0.4 they use to get to the airport. Prices for long-stay parking (24 hours to vacant premises contributed to this result (vacancy rate as of 31 and over) were raised slightly with effect from 1 January 2009. December 2009: 3.2 percent). The decline in revenue from other Parking fees at Zurich Airport are comparable to those that apply services in connection with real estate is primarily attributable to the in the city of Zurich. fact that a one-off major building order had been completed for a customer in the preceding year. Revenue from facility management amounted to 117.4 million Swiss francs (plus 0.4 percent). Revenue from rental and leasing agreements Revenue from services fell in the year under review by developed positively versus the previous year, increasing by 3.4 million approximately 3.7 million Swiss francs (minus 11.9 percent) to 27.7 Swiss francs (plus 4.2 percent). This is primarily attributable to the million. This was mainly due to the loss of revenue from services first full-year effect of sub-rental of premises in the airport hotel. At relating to conference facilities that were integrated into the airport the end of 2009, long-term agreements with major tenants were hotel in summer 2008. Up to that time the Airport Conference concluded for temporarily vacant premises in other buildings in the Center had been operated by Flughafen Zürich AG. airport portfolio. Revenue from the billing of energy and - 35 - Business & traffic trends | Total revenue & earnings trend Business & traffic trends | Profit

External costs incurred by Flughafen Zürich AG for police and security The increase in other operating expenses by 4.1 million Swiss francs Profit of Flughafen Zürich AG. The result, excluding aircraft noise, was rose by 0.4 percent to 113.5 million Swiss francs. Slightly higher to 40.2 million is attributable to two main factors: on the one hand, 176.7 million Swiss francs (plus 75.6 percent). Basic earnings per costs for services provided by the cantonal police were more or less costs incurred in connection with assistance for passengers with The reported profit of 190.6 million Swiss francs (plus 57.1 percent) is share amounted to 31.20 Swiss francs including aircraft noise and offset through savings resulting from the introduction of Staff reduced mobility were reported here for the first time, and on the primarily composed of the cited profit from the partial disposal of the 28.92 Swiss francs excluding aircraft noise. Screening stage III. The higher capacity requirements during peak other hand the costs for sub-rented premises in the airport hotel were Indian holding. Taking that and the better-than-expected traffic trend travel periods were also a factor here. reflected for a full year for the first time in 2009. in Zurich into account, the profit is within the original expectations

Expenses relating to energy and waste fell by 1.8 percent from 25.0 Expenses relating to sales, marketing and administration million Swiss francs to 24.6 million. This was largely attributable amounted to 38.2 million Swiss francs, which was 3.4 million (or 8.2 2009 2009 2008 2008 to lower fuel prices. This decrease more than compensated for the percent) lower than in 2008. including Elimination of excluding including Elimination excluding higher cost of electricity resulting from deregulation. (CHF 1,000) aircraft noise aircraft noise aircraft noise aircraft noise of aircraft noise aircraft noise Other expenses/income, net amounted to 2.5 million Swiss francs Revenue from aviation operations 505,092 –32,268 472,824 525,689 –46,436 479,253 Revenue from non-aviation operations 315,115 4,667 319,782 329,414 4,331 333,745 Costs for maintenance and material were well down versus the prior in the year under review. These mainly concern special write-offs Total revenue 820,207 –27,601 792,606 855,103 –42,105 812,998 year, falling by 3.2 million Swiss francs to 40.7 million (minus 7.3 arising from the disposal of equipment no longer required. Operating expenses –417,973 –417,973 –434,862 –434,862 percent). This decline is mainly attributable to the full-year effect of Earnings before interest, tax, the assumption of the maintenance of the baggage sorting and depreciation and amortisation (EBITDA) 402,234 –27,601 374,633 420,241 –42,105 378,136 handling system in the middle of 2008. In addition, in the prior year EBITDA margin (in %) 49.0 47.3 49.1 46.5 one-off material costs for a major construction project were included that was implemented on behalf of a client to whom the costs were Depreciation and amortisation –189,078 5,634 –183,444 –186,168 2,819 –183,349 passed on. Earnings before interest and tax (EBIT) 213,156 –21,967 191,189 234,073 –39,286 194,787 EBIT margin (in %) 26.0 24.1 27.4 24.0

(CHF 1,000) 2009 2008 Change in % Profit 190,610 –13,957 176,653 121,314 –20,701 100,613 Earnings before interest, tax, depreciation and amortisation (EBITDA) 402,234 420,241 –4.3 Profit in % of total revenue 23.2 22.3 14.2 12.4 Depreciation and amortisation –189,078 –186,168 1.6 Earnings before interest and tax (EBIT) 213,156 234,073 –8.9 Financial result, net –77,812 –79,213 –1.8 Share of profit or loss of associates 8,376 –7,612 n/a Gain on disposal of shares in associate 95,278 0 n/a The Board of Directors is proposing the payment of an ordinary dividend of 5.00 Swiss francs (prior year: 5.00 Swiss francs) and a special Income tax –48,388 –25,934 86.6 dividend (from the partial disposal of the interest in Bangalore Internationale Airport Ltd.) of 2.50 Swiss francs per share. Profit 190,610 121,314 57.1

Earnings before interest, tax, depreciation and amortisation Airport of Zurich Noise Fund last year. This effect was largely (EBITDA) reached 402.2 million Swiss francs, and were thus 18.0 compensated for by slightly higher interest expenses on non-current million Swiss francs lower than last year (420.2 million). At 49.0 financial debt and significantly lower interest income on financial percent, the EBITDA margin was slightly down versus the prior year assets of the Airport of Zurich Noise Fund due to the low interest rate. (49.1 percent).

Depreciation and amortisation was 189.1 million Swiss francs, The share of profit or loss of associates reflects the positive result around 2.9 million higher than in the previous year. The increase is of the investment in the Indian airport operator in Bengaluru (Bangalore primarily due to the amortisation of the intangible asset from the International Airport Ltd., BIAL) and the share in profits from the right of formal expropriation, which was amortised in 2009 for the holdings in Latin America. The share in BIAL's profits is attributable first time on a full-year basis. to a renewed positive course of business on the one hand, and on the other hand to a one-time effect resulting from a review of the useful A lower EBITDA and higher depreciation and amortisation resulted life of the infrastructures at the airport in Bengaluru. in a reduction in earnings before interest and tax (EBIT) by 20.9 million Swiss francs to 213.2 million (minus 8.9 percent). Gain on disposal of shares in associate includes the gain (before tax) of 95.3 million Swiss francs from the disposal of 12 percent The net financial result, at 77.8 million Swiss francs, was 1.4 million of the shares in the operator of the airport in Bengaluru. Flughafen Swiss francs (or 1.8 percent) lower than in the previous year. This Zürich AG holds a 5 percent stake in BIAL as of the balance sheet was partly attributable to the write-off of a Sigma investment in the date.

- 37 - Business & traffic trends | Segment reporting

Notes on segment reporting by Flughafen Zürich AG can be found under “Financial report”, “Consolidated financial statements according to Aviation aircraft noise IFRS”, “Accounting policies” and “Segment reporting”.

(CHF million) 2009 2008 Change in % Aviation flight operations Revenue from third parties 32.3 46.4 –30.4 Inter-segment revenue 0.0 0.0 n/a Total revenue 32.3 46.4 –30.4

(CHF million) 2009 2008 Change in % Segment result (EBIT) 22.0 39.3 –44.0 Revenue from third parties 331.1 335.7 –1.4 Total segment assets 420.4 402.3 4.5 Inter-segment revenue 13.3 10.5 26.7 Depreciation and amortisation 5.6 2.8 100.0 Total revenue 344.4 346.2 –0.5 Investments 74.7 285.8 –73.9 Non-current provisions for sound insulation and formal expropriation 246.4 244.6 0.7 Segment result (EBIT) 20.1 10.1 99.0 Number of employees (full-time positions) as of 31 December 12 11 9.1 Total segment assets 936.2 928.1 0.9 Depreciation and amortisation 54.4 52.2 4.2 Investments 57.0 98.8 –42.3 Number of employees (full-time positions) as of 31 December 571 533 7.1 Besides the decline in traffic, the fall in revenue in the “Aviation aircraft divided proportionally between Flughafen Zürich AG (53 percent) noise” segment by 14.1 million Swiss francs is largely attributable to and the Canton of Zurich (47 percent) in line with the terms of the splitting of noise charges between Flughafen Zürich AG and the the supplementary agreement concerning the financing of formal At 20.1 million Swiss francs, the result in the “Aviation flight operations” The increase in the number of employees (full-time positions) is due Canton of Zurich. Since 1 July 2008, the noise charges have been expropriations. segment was positive. This was higher than in the prior year despite to the implementation of the Schengen Agreement in March 2009. a slight decline in the traffic volume and an associated fall in segment The costs associated with the expansion and renovation of areas used income. The positive change can be attributed to the fact that a for flight operations make up the majority of the segment investment Non-aviation one-time payment was made to the liquidator of Swissair in the previous of 57.0 million Swiss francs. year. (CHF million) 2009 2008 Change in % Revenue from third parties 315.1 329.4 –4.3 Aviation security Inter-segment revenue 122.7 123.1 –0.3 Total revenue 437.8 452.5 –3.2

Segment result (EBIT) 177.2 192.1 –7.8 (CHF million) 2009 2008 Change in % Total segment assets 1,777.6 1,795.0 –1.0 Revenue from third parties 141.7 143.6 –1.3 Depreciation and amortisation 123.2 126.0 –2.2 Inter-segment revenue 0.0 0.0 n/a Investments 124.0 144.8 –14.4 Total revenue 141.7 143.6 –1.3 Number of employees (full-time positions) as of 31 December 702 695 1.0

Segment result (EBIT) –6.1 –7.4 –17.6 Total segment assets 53.4 41.5 28.7 Depreciation and amortisation 5.8 5.1 13.7 Investments 12.6 9.1 38.5 The result of the “Non-aviation” segment was primarily influenced by At 177.2 million Swiss francs, the segment result is 14.9 million Swiss Number of employees (full-time positions) as of 31 December 17 15 13.3 a decline in revenue from third parties by 14.3 million Swiss francs. francs down compared to the previous year. As well as a decline in On the one hand, revenue in the retail and duty-free areas showed a revenue from third parties, inter-segment revenue was also slightly disproportionate decrease compared with the trend in traffic volume lower than in the previous year. Segment costs only increased in 2009, and was a contributory factor in this decline. On the other marginally versus 2008. The decline in revenue in the “Aviation security” segment by 1.9 million the previous year. Investing activities primarily focused on the expansion hand, parking revenue fell despite an adjustment of charges as of 1 Swiss francs reflects the trend in traffic volume. Security costs of infrastructure in connection with the implementation of Staff January 2009. increased slightly in the year under review. The segment result saw Screening III. a slight year-on-year increase, but is still negative. This segment also included a portion of the payment to the Swissair liquidator in

- 39 - Business & traffic trends | Holdings & subsidiaries

Bengaluru (India) Latin America Venezuela APT Airport Technologies AG Up until 29 December 2009, Flughafen Zürich AG held a 17 percent All the activities of Flughafen Zürich AG in Latin America (except In 2006, the governor of the province of Nueva Esparta expropriated APT Technologies AG is a wholly-owned subsidiary of Flughafen stake in the share capital of Bangalore International Airport Ltd. those in Venezuela) are carried out via a joint venture established the airport on Isla de Margarita for the second time, after which the Zürich AG. In the 2009 financial year it generated revenue of over (BIAL), the owner and operator of the greenfield airport that was together with the Camargo Corrêa Group (Brazil) and Gestion e airport was operated by a “junta interventora” under the supervision 21 million Swiss francs and further expanded its range of services. opened in Bengaluru, India, in May 2008. Ingenieria S.A. (IDC) of Chile under the name of “A-port”. Two separate of the Venezuelan supreme court up until the spring of 2009. In addition, modernisation work was carried out on existing IT entities – A-port S.A. and A-port Operaciones S.A. – were formed in infrastructure. Following the sale of 12 percent of its holding in BIAL to the Indian order to fully separate financial involvements and management from On 4 March 2009 the Venezuelan supreme court ordered that the company GVK Power & Infrastructure Ltd. (GVKPIL), Flughafen operation of airports. “junta interventora” is to be dissolved and management of the airport The number of available CUSS (Common Use Self Service) machines Zürich AG still held a 5 percent stake in the Indian airport operator as is to be turned over to the central government of Venezuela. was increased in the year under review. The machines are equipped of the balance sheet date. Flughafen Zürich AG retains responsibility Based in São Paulo (Brazil), A-port S.A. invests in the construction and with the latest barcode scanner technology and there are now 48 of for the operation of the airport on the basis of an operating, management operation of airport projects and airport-related infrastructure in Flughafen Zürich AG finds this action unacceptable and will therefore them at Zurich Airport. Sixteen airlines currently make use of this and service level agreement. Revenue is flowing to Flughafen Zürich Latin America and the Caribbean. Flughafen Zürich AG holds a 15 put the case before the International Center for Settlement of Investment service. AG from this agreement. As before, Flughafen Zürich AG is represented percent stake in A-port S.A. The existing interests in the Chilean Dispute (ICSID) in Washington D.C. if an amicable settlement cannot on the Board of Directors of BIAL. airports of Puerto Montt, La Serena and Calama were incorporated be reached in the next few months. This step is in compliance with The GAVS boarding card control system, which registers when into the joint venture in the previous year. In addition, 80 percent of the bilateral investment protection treaty that exists between Venezuela passengers enter the airside center and allows airlines to check The strategic alliance agreement entered into with the buyer of the a stake held by Camargo Corrêa in Concessionária do estacionamento and Switzerland. whether a missing passenger is already in the airside area of the share package also sets the direction for other airport projects in de Congonhas S.A., a car park at Congonhas Airport in São Paulo, airport, was also introduced in 2009. southern Asia. was also incorporated into the joint venture. The acquisition of a 51 The value of the holding was fully impaired in 2006. percent stake in Hato International Airport in Curaçao at the end of January 2009 was the first successful joint acquisition.

A-port Operaciones S.A., which is based in Santiago (Chile), is to assume responsibility for the management and operation of interests held under the name of A-port S.A. These concern the three airports in Chile (Puerto Montt, La Serena and Calama), and the valid agreements in Colombia and Honduras via the respective local companies (IDC Colombia S.A. and Unique IDC C.V.). Flughafen Zürich AG holds a 32.6 percent interest in A-port Operaciones S.A.

- 41 - Business & traffic trends | Assets & financial position Business & traffic trends | Consolidated cash flow statement

Investments Consolidated cash flow statement In 2009, cash flow from financing activities amounted to minus 58.8 Taking account of measures relating to aircraft noise, in 2009 a total of 268.3 million Swiss francs was invested, compared with 538.5 Cash flows from operations fell by 64.2 million Swiss francs versus million Swiss francs. In the year under review, a debenture totalling million in 2008. Investments in property, plant and equipment amounted to 181.4 million (2008: 248.6 million). Overview of investments the prior year to 350.9 million. This is partly attributable to the 128.0 million Swiss francs was repaid and a new debenture with a by category: lower EBITDA, but also to higher cash outflows for income tax and nominal value of 225.0 million Swiss francs was taken up. changes in current assets, net. Cash flow from operations relating to aircraft noise amounted to 26.1 million Swiss francs As of the end of 2009, Flughafen Zürich AG possessed cash and cash (CHF million) 2009 2008 (2008: 35.3 million). equivalents in the amount of 231.7 million Swiss francs (2008: 74.0 Projects in progress (property, plant and equipment) 181.4 248.6 million), of which the sum of 7.0 million is held by the Airport of Zurich Projects in progress in leasing 0.0 0.0 Cash flow from investing activities improved, mainly due to less Noise Fund. Intangible asset from right of formal expropriation 0.0 241.5 construction activity and the proceeds from the disposal of a portion Investments in associates 12.3 2.8 of the stake in BIAL, by 124.4 million Swiss francs and amounted to Non-current financial assets of Airport of Zurich Noise Fund 74.6 44.5 Other financial assets 0.0 1.1 minus 134.4 million in 2009. The portion of cash flow from investing Total 268.3 538.5 activities relating to aircraft noise (net investments in financial assets of the Airport of Zurich Noise Fund) amounted to minus 40.0 million Swiss francs (2008: minus 6.3 million).

Projects in progress (property, plant and equipment) includes 62.2 Investments in non-current financial assets of the Airport of million Swiss francs for projects connected with the “Zurich 2010” Zurich Noise Fund includes new investments and re-investments (CHF 1,000) 2009 2008 Change in % investment programme. Of this, 20.2 million Swiss francs were spent of resources of the Airport of Zurich Noise Fund. Cash flow from operations 350,933 415,102 –15.5 on the centralisation of security check facilities, 12.5 million on of which related to aircraft noise 26,063 35,342 –26.3 construction work on the new Dock B, 9.3 million on modifications Cash flow from noise charges 32,096 45,526 –29.5 to the aprons and 20.2 million on other sub-projects within this Cash flow for sound insulation and formal expropriations –6,033 –10,184 –40.8 major project. Investments in 2009 also included the following projects: Cash flow from investing activities –134,437 –258,849 –48.1 of which related to aircraft noise –40,019 –6,337 n /a • Various maintenance operations to preserve the value of engineering Investments in financial assets of Airport of Zurich Noise Fund –113,649 –139,713 –18.7 structures and plant (16.5 million) Repayment of current financial assets of Airport of Zurich Noise Fund 73,630 133,376 –44.8 • Sundry costs remaining in connection with the implementation of Staff Screening III (11.6 million) Cash flow from financing activities –58,769 –164,571 –64.3 • Replacement of vehicles (11.0 million) Effect of foreign exchange differences on cash and cash equivalents held –72 0 n/a • Apron expansions (10.5 million) Increase/decrease in cash and cash equivalents 157,655 –8,318 n /a • Renovation of multi-storey car parks (6.2 million)

Balance at beginning of financial year 74,038 82,356 –10.1 Increase/decrease in cash and cash equivalents 157,655 –8,318 n/a Balance at end of financial year 231,693 74,038 212.9 of which included in Airport of Zurich Noise Fund 7,013 22,374 –68.7

- 43 - Business & traffic trends | Balance sheet structure Business & traffic trends | Outlook

Balance sheet structure Non-current liabilities remained virtually unchanged, and totalled Outlook In the year under review, the balance sheet total increased by 196.8 1,406.7 million Swiss francs as of 31 December 2009. Current liabilities million Swiss francs to 3,559.8 million, primarily due to the significant increased slightly to 554.7 million Swiss francs. Traffic and earnings trend increase of cash and cash equivalents. Non-current assets only saw Flughafen Zürich AG is cautiously optimistic that an economic a slight increase. Investment intensity therefore fell versus the prior The return on average capital employed (ROCE) fell from 7.1 percent recovery will have a positive impact on passenger demand. Overall, year from 91.5 percent to 87.1 percent. to 6.2 percent. the company anticipates a slight increase in passenger volume by 3 to 5 percent. It also expects a slight improvement in the consumer Equity was increased by 169.5 million Swiss francs, and now amounts sentiment. to 1,598.4 million Swiss francs, which corresponds to a ratio of 44.9 percent (2008: 42.5 percent). Operating expenses For the 2010 financial year, costs are expected to increase less sharply than earnings. The prerequisite for this is that no unexpected (CHF 1,000) in % 2009 in % 2008 security requirements will have to be implemented. Non-current assets 87.1 3,100,278 91.5 3,078,684 Current assets 12.9 459,477 8.5 284,243 Balance sheet total 100.0 3,559,755 100.0 3,362,927 Investments The investment budget of Flughafen Zürich AG for 2010 will be between 250 million and 300 million Swiss francs. The biggest Equity 44.9 1,598,411 42.5 1,428,935 individual projects are the complete revamping of Dock B and the Non-current liabilities 39.5 1,406,676 41.6 1,400,458 construction of a central security check building as part of the Current liabilities 15.6 554,668 15.9 533,534 “Zurich 2010” project. Balance sheet total 100.0 3,559,755 100.0 3,362,927 Result Capital employed 2,753,652 2,637,669 Excluding any unexpected influences, both the EBITDA and the Return on average capital employed (ROCE) 6.2 7.1 EBITDA margin are likely to be slightly higher than in 2009. The company also expects profit to develop positively, excluding the proceeds from the partial disposal of the Indian holding in 2009.

- 45 - Business & traffic trends | Airport of Zurich Noise Fund

Airport of Zurich Noise Fund A combined overview of the Airport of Zurich Noise Fund (showing The situation of this fund (consolidated) is as follows: Flughafen Zürich AG refinances all the costs relating to aircraft the portions attributable to Flughafen Zürich AG and to the Canton noise through special noise charges based on the principle of “user of Zurich separately) is presented below. pays”. In the interest of transparency, costs and income generated (CHF 1,000) 2009 2008 in connection with aircraft noise are recognised in a special statement The detailed fund statement is disclosed to a committee comprising FZAG Canton of Zurich Total FZAG Canton of Zurich Total for the Airport of Zurich Noise Fund. The Airport of Zurich Noise representatives of Zurich Airport and the relevant authorities. The Fund is a liquidity-based fund. The statement for the fund presents the regulations and other information about the Airport of Zurich Noise Airport of Zurich Noise Fund as of 1 January 161,595 125,838 287,433 248,564 0 248,564 accumulated surplus or shortfall as of balance sheet date arising Fund (including an overview of its financial development) can be Split as of 1 July 2008 0 0 0 –115,400 115,400 0 from noise charges, less expenses for formal expropriations, sound found at www.unique.ch/aznf (from 15 April 2010, Restatement of Canton of Zurich 1) 0 80 80 0 0 0 insulation measures and noise-related operating costs. www.zurich-airport.com/aznf). Revenue from noise charges 32,096 28,463 60,559 45,526 15,675 61,201 In the event that the fund statement should show an accumulated Costs for sound insulation and other measures –6,033 0 –6,033 –9,303 0 –9,303 income surplus, the liquid funds of the Airport of Zurich Noise Fund Costs for formal expropriations 2) –767 –3,835 –4,602 –1,514 0 –1,514 will be invested separately in financial assets and cash equivalents. Net result before operating costs and financial result 186,891 150,546 337,437 167,873 131,075 298,948 These funds are managed by professional investment institutions on Noise-related operating costs –4,667 –56 –4,723 –4,331 –54 –4,385 the basis of a conservative, money-market-oriented investment Interest income from assets of Airport of Zurich Noise Fund 3,377 2,397 5,774 7,727 986 8,713 strategy, and income resulting from the investments is credited to Adjustments to fair value of available-for-sale securities and the fund statement. write-off of financial assets –152 486 334 –9,674 –6,169 –15,843

In view of the fact that a portion of the Airport of Zurich Noise Fund Airport of Zurich Noise Fund as of 31 December 185,449 153,373 338,822 161,595 125,838 287,433 was transferred to the Canton of Zurich on 1 July 2008 within the scope of the prefinancing solution agreed with the Canton (see pages 1) As a result of a restatement (the accounting policies of the Canton of Zurich were amended as of 1 January 2009) the opening balance is changed (reason: accrued interest is taken 96 and 97 in the financial section of this annual report), and that, into account). as of that date, the Canton of Zurich also receives a portion of the 2) In addition to compensation payments for formal expropriations, this amount includes other associated external costs, in accordance with the regulations of the Airport of Zurich collected revenue from noise charges, only the portion of the Noise Fund (see note 16, “Non-current provisions for sound insulation and formal expropriations” on page 113 in the financial section of this annual report). Airport of Zurich Noise Fund that concerns Flughafen Zürich AG is now reported in the consolidated financial statements (see pages 114 and 115 in the financial section of this annual report). The table below presents an overview of the maturities and credit ratings of the invested resources of the Airport of Zurich Noise Fund:

(CHF 1,000) Maturity 2010 2011 2012 2013 2014ff. Total in % Credit rating Cash and cash equivalents 80,315 0 0 0 0 80,315 23.70 AAA 67,249 27,566 16,980 5,290 0 117,085 34.56 AA+/AA/AA- 38,202 19,549 22,801 1,528 1,529 83,609 24.68 A+/A/A- 9,163 15,444 5,065 13,634 0 43,306 12.78 Not rated 4,873 5,385 0 0 0 10,258 3.03 Other 1) 4,249 0 0 0 0 4,249 1.25 Total 204,051 67,944 44,846 20,452 1,529 338,822 100.00 in % 60.22 20.05 13.24 6.04 0.45 100.00

1) This item includes withholding tax and accruals. For accounting reasons, an accrual towards Flughafen Zürich AG arises as of balance sheet date. This is compensated in the month following, so the balance of liquid funds is restored.

- 47 - Flugzeugenteisung

E Anfahrtsplan Flughafen ZürichGates

E

A Gates

B Gates

Place: elle Dock B Tankst Zurich Airport Time: 9.15 a.m. Name: Marit Cummings Profession: Master planner Flughafen Zürich AG

- 49 - Environmental protection | Environmental management & communication Environmental protection | Noise management

Environmental responsibility Drawing on these environmental data, legal and official Noise levels Minimising noise through noise charges In the interest of sustainability it is the responsibility of requirements and the environmental guidelines, Flug- Exposure to aircraft noise is primarily determined on the and technology Flughafen Zürich AG to take into account social and hafen Zürich AG compiles environmental portfolios for basis of calculations because it is not technically possible By imposing noise charges on airlines, Zurich Airport environmental factors alongside the increasing economic the individual business divisions. In these portfolios, to implement a physical measuring system covering the aims to encourage them to operate only the quietest requirements. All employees should be aware of their environ-mental aspects are reviewed and weighted in whole airport and the surrounding area. Aircraft noise levels possible aircraft on the Zurich route. For this purpose, environmental responsibility and integrate environmental terms of relevance, potential impact and obligation to are calculated by the Swiss Federal Laboratories for all types of aircraft are broken down into one of five protection into their daily work. To this end, Flughafen act. They also form the basis for planning appropriate Materials Testing and Research (EMPA) on the basis of noise categories with differing charge rates. In 2009, Zürich AG has defined a number of binding principles in measures. The implementation of these measures is actual flight paths and flight movements, as well as 89 percent (2008: 88 percent) of the aircraft operating its environmental guidelines. These oblige the company to: internally supervised and monitored. Within the framework emissions data from the aircraft. Noise levels are depicted at Zurich Airport were class 5 aircraft, i.e. the least noisy avoid and reduce environmental pollution of its environmental management programme, Flughafen on noise maps (see illustration below). Over the last 20 type, and only 0.5 percent (2008: 1.0 percent) were fulfil the legal provisions and official regulations Zürich AG honours its environmental responsibility at all years, there has been a continuous decline in noise levels class 2 aircraft. For some years now, very few aircraft in governing environmental protection in an efficient and levels and across all divisions. Line managers must be despite the fact that the number flight movements has noise category 1 have arrived at or departed from effective manner and in command of their environmentally relevant processes increased. This is attributable to the use of significantly Zurich Airport. be aware of and manage all environmentally relevant and further develop them. They report back on the improved engines, which are now much quieter than processes. implementation of measures and the environmental ever before. Technical advancements in engine building as well as the situation on an annual basis in a management review aerodynamic design2) of aircraft will allow the noise situation Environmental management that is submitted to the Management Board, which then Flughafen Zürich AG conducts its own individual to be further improved in the short- to medium-term. In order to honour this obligation, Flughafen Zürich AG defines new guiding principles on this basis. measurements at ten noise monitoring terminals located Optimisations to flight operations, such as the continuous operates a comprehensive environmental management around the airport. The new monitoring equipment, descent approach, can also reduce aircraft noise but are programme which has been certified in line with the Environmental supervision of construction projects which was commissioned in 2008, records noise levels not always possible for operational reasons. international ISO 14001:2004 standard since 2001. The Flughafen Zürich AG operates a company-wide as Leq1) in dB(A). The results of the measurements are second re-certification in 2007 and the successful audit environmental project management programme. All published on the Internet every month. Daytime noise in 2009 attest to this commitment. construction projects are evaluated in terms of their levels at the monitoring terminals only changed very ecological impact, not only during the construction phase, slightly versus the prior year: the levels to the north, south Realistic environmental analysis and the planning of but also with regard to their subsequent usage and are and west of the airport fell slightly, while those to the subsequent measures rely on appropriate data management. then assigned relevant environmental supervision. The east were more or less unchanged. Every year, environmental data are collected throughout environmental regulations for construction projects the airport, recorded, processed and systematically reported stipulated by Flughafen Zürich AG are an integral part in the form of standardised key data. These data illustrate of the tender terms and construction contracts and are Evolution of daytime noise levels the environmental situation and how it evolves. Until now, generally regarded as the environmental standard for the Flughafen Zürich AG published these key figures in implementation phase. These regulations can be defined environmental reports and in the more recent sustainability in more detail depending on the project. report. They now form an integral part of the annual report and are presented below. Communication of environmental issues Zurich Airport's role as a transport hub creates significant social and economic advantages for Switzerland, but operating the airport also has a significant impact on the environment. Flughafen Zürich AG constantly endeavours to reconcile the social need for mobility with responsibility towards the environment. An exhibition displayed at Zurich Airport raises awareness of the various enviromental issues and outlines the measures the airport is using to deal with them. The travelling exhibition, which comprises nine showcases, is displayed at different locations around the airport and in the surrounding region. Information on the current location is available at www.flughafen-zuerich.ch. This website also features up-to-date information on various environmental issues.

Reproduced by permission of swisstopo (BA100069)

1) Leq stands for energy equivalent continuous sound level and is a measure for the average noise level. 2) Aerodynamic sounds are a substantial cause of noise, particularly on landing. - 51 - Environmental protection | Noise management Environmental protection | Local air quality

Flight paths and deviations from flight paths is investigated. If there is no plausible reason as to why Pollutant emissions Regional air pollution Take-off and approach routes to and from Zurich Airport a deviation occurred, for example to avoid storm clouds Nitrogen oxides (NOX), volatile organic compounds The Canton of Zurich's Office for Waste, Water, Energy and are configured in such a way as to avoid aircraft noise or due to a specific instruction received from air traffic (VOCs), carbon monoxide (CO) and particulate matter Air monitors air quality in the region surrounding the over densely populated areas where possible. The Noise control, the pilot concerned is contacted and asked to (PM) are the key pollutants which can affect local air airport on behalf of Flughafen Zürich AG using a network Management department monitors adherence to these provide a detailed explanation. quality. The new methods and guidelines published by of monitoring stations. Air quality in terms of nitrogen low-noise flight paths. Every significant flight path deviation the International Civil Aviation Organisation (ICAO), dioxide has significantly improved over the past few years, in which Zurich Airport played an instrumental role in but the thresholds values are still being exceeded in developing, allow emissions levels to be calculated some cases. This is particularly true in areas with busy Flight path deviations 2009 2008 2007 even more precisely. Flight operations involving aircraft roads. The airport and flight operations only have a Total number of registered deviations 1,037 881 870 on the ground and in the area surrounding the airport minimal influence on levels of nitrogen and particulate – Proportion of which were investigated 304 300 383 account for the majority of nitrogen oxide emissions matter in the surrounding area. By modelling the airport's Investigations suspended, caution issued 3) 311 315 344 (around 85 percent). These emissions fell slightly last contribution to the overall levels of pollution measured, Discussion with chief pilot 14 14 8 year, which can be attributed to overall traffic developments. it becomes clear that only a few kilometres away from Cases reported to FOCA 1 6 2 Compliance with the threshold stipulated by the authorities the airport, the airport's influence is already minimal. For

of 2,400 tonnes of NOX from flight operations, handling example, around two kilometres away, the airport and infrastructure was about 43 percent. contributes less than 10 percent to nitrogen dioxide Night flights and special authorisations Communication with those affected by noise pollution levels. This is also due to the fact that the The number of flight movements and the way in which The objective of Flughafen Zürich AG is to engage in majority of aircraft emissions are produced at an altitude they are distributed across the individual runways is of dialogue with its neighbours and with the wider population Impact of the airport on local at which they are quickly dispersed over a wide area. central importance for noise levels. Flights at night (10 through various communication channels. An important air quality in the region p.m. - 6 a.m.) particularly affect local residents. As in resource in these communication efforts is the “aircraft Zurich Airport has been levying emissions charges for the prior year, these accounted for around 3.5 percent noise hotline”. Residents can call 043 816 21 31 in order aircraft since 1997. Similar control tools have since been of total flight movements in 2009. Only 77 (2008: 158) to report their enquiries or complaints directly and introduced at various other airports throughout Europe. justified special authorisations were issued for flights unbureaucratically to the airport. They can also contact Zurich Airport has been carrying out preparatory work running during the night-time curfew period, see page 59. the airport via e-mail or regular mail. Staff in the Noise together with other Swiss airports in order to ensure a Flughafen Zürich AG intends to reduce the number of management department at Flughafen Zürich AG respond harmonised change to the European emissions charge night flights by further improving the punctuality of to every single message and answer specific questions model in spring 2010. This model moves away from departing flights. immediately. Statistics are compiled on the number of fixed emissions categories and instead multiplies the actual messages received and the reasons for complaint and engine emissions by a charge rate. The advantage of are presented to the Management Board. this is that the direct user-pays principle provides a key Arrival and departure statistics incentive to give attention to and implement smaller improvements and modernisations.

Reproduced by permission of swisstopo (BA100069)

Reproduced by permission of swisstopo (BA100069)

3 ) The cases being handled by the Swiss Federal Office of Civil Aviation (FOCA) that are still pending from the previous year are included. - 53 - Environmental protection | Local air quality Environmental protection | Global climate

Others measures being implemented baggage transport. Previous measures, for example in The impact of aviation on our climate Key successes to date A number of additional measures are also being the field of promoting public transport, are being continued. Aviation mainly impacts climate through its emissions of Flughafen Zürich AG is mindful of its responsibility implemented in order to reduce emissions. These include Of particular relevance from an environmental point of carbon dioxide (CO2). Other significant emitted substances regarding the consequences of climate change and equipping the aircraft stands in the south with stationary view is the provision of centrally-produced energy and air which can cause changes in the atmosphere are nitrogen therefore adopted a climate protection strategy in the aircraft power supply units. These further reduce emissions conditioning for aircraft at the piers. Thanks to high oxide, water vapour and particles. Aviation is responsible year under review (extract). “As an airport operator, from the aircraft's auxiliary power unit. To allow machinery availability and an obligation to connect, up to 90 tonnes for around 2 percent (with a range of between 1.6 percent Flughafen Zürich AG is part of the aviation industry and and vehicles to be refuelled airside, a second natural gas of NOX and over 30,000 tonnes of CO2 can be saved and 2.8 percent) of total global CO2 emissions caused recognises the growing significance of long-term climate filling station was put into operation. This also supports every year. by humans, according to the Intergovernmental Panel for protection. We are committed to ensuring that aviation the programmes being implemented by airport partners, Climate Change (IPCC). evolves in an environmentally-friendly manner. Our aim such as the procurement of gas-powered tractors for is to further reduce the CO2 emissions we cause, while Carbon dioxide emissions from the taking into account the general legal and economic Zurich airport system framework”. This will form the basis of long-term, concrete Evolution of nitrogen dioxide levels in the vicinity of In accordance with the GHG (Greenhouse Gas) goals and appropriate measures. Flughafen Zürich has 3 the airport (mean annual levels in µg/m ) Protocol, CO2 emissions are broken down into three areas reduced its CO2 emissions from scopes 1 and 2 by more (“scopes”): scope 1 comprises all emission sources than 15,000 tonnes (minus 31 percent) since 1991,

NO2 controlled by the airport operator itself (e.g. vehicles and despite a 40 percent increase in infrastructure and a 60 heating systems), scope 2 covers energy sourced by the percent increase in traffic. airport from outside and scope 3 includes all emissions 50 which occur in con-nection with business operations (e.g. flight operations and handling). According to a 40 refinement by the ACI (Airports Council International), a distinction is to be made as to whether or not the Main road (Kloten–Bassersdorf) airport can influence scope 3. It is clear that within the 30 international aviation industry, the airport itself only Airport accounts for a minimal proportion of emissions. (Runway 28) 20 Residential area (Kloten)

10 Background (Rümlang)

Average annual NO standard 0 2 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 CO2 emissions at Zurich Airport by scope

Scope 1: Zurich Airport Scope 3B: 31,696 tonnes foreign sources, not in uenceable Scope 2: 2,982,762 tonnes Zurich Airport, electricity 2,630 tonnes

Scope 3A: foreign sources, in uenceable 108,244 tonnes

- 55 - Overall energy consumption(MWh/a) Electricity consumption by(MWh/a) theairport Heat consumption by(MWh/a) theairport Trend inZurichAirport'senergy use Environmental protection |Resources (energy &water) to supply buildings and year). An additional 105,744 m³ of groundwater was used of drinking water (minus 2.6 percent versus the previous Over the past year, Zurich consumed Airport 527,548 m³ Water consumption Zurich Airport(asof1January 2010) Trend ofspecifictotalenergy consumptionat commissioned to analyse the suitability of all buildings A basicstudyontheissue ofphotovoltaics was also in order to improve operational energy efficiency. consumption analysis andto planappropriate measures Additional staff were hired to conduct theongoing boilers, andimprovements to thelightingsystems. at hangar 1, the optimisation of supply pipelines to various consumption in 2009 include the insulation of the door days). Examples of measures employed to reduce energy taking into account weather conditions (heating degree than before expansion stage 5(reference year: 1994, consumed intheyear underreview atZurich Airport was energy more no Shopping) Center, Airport Airside Despite thesignificantincrease infloorspace (DockE, consumption totalled 180,415 MWh (minus 2.4 percent). 0.6 percent versus the previous year), while electricity Consumption ofheatamounted to 125,056 MWh (plus Energy consumption in percent Specific energy consumption 100 80 60 90 50 70

1994 1995 1996 1997

11,757 m³ of rainwater was was rainwater of m³ 11,757 1998 1999 2000 2001 2002 2003 2004 2005

2006

2007 2008 (unchanged from previous year). which equates to consumption of29.4 fresh water was therefore consumed (minus0.7 percent), toilet flushing.A total ofaround 645,049 for m³of used weather conditions in2009, energy efficiency fell. adverse the and volume passenger in drop slight of the full autonomy in terms of target achievement. On account The advantage ofthisisthatthecompanies are granted efficiency byan average of 2 percent per year by 2014. department of the canton of Zurich to increase theenergy An agreement was made with the building management buildings. existing airport's the for responsible are They by Zurichlarge-scale Airport's consumers' agreement. Radisson Blu) and Swiss Federal Railways (SBB) are bound Flughafen Zürich AG, Avireal AG, Acron AG (Hotel Large-scale consumers' agreement total electricityof theairport's consumption. would provide enoughenergy to cover around 7 percent of allroof areas (over 200,000 m²)could beused,which at the airport for the future use of solar power. Over half 2009 2010 125,056 180,415 305,471

2009 2011 2012 2013 2014 Level recorded by Zurich Airport large-scale consumer agreement Level asperZurich Airport consumers (minus2percent p. a.) Standard criterion for large-scale 309,232 184,861 124,371 2008 litres per passenger 290,132 178,719 111,413 2007 municipalities ofKloten andOpfikon. into aninter-municipal establishmentin 2010. For this current organisation is to be restructured and transformed the sewage treatment association in Kloten-Opfikon. The agreement isinplace between Flughafen Zürich AG and and aircraft sewage, isalsopurifiedthere. Anaffiliation maintenance aircraft from water waste pre-treated e.g. sewage treatment plantinGlattbrugg.Industrialwater, toilet facilities and restaurants) goes to the Kloten-Opfikon All domesticwaste water from Zurich(e.g. Airport from Domestic waste water in 2010. oftheperiodical number ofmodificationsaspart review a undergo will resources, of recycling extensive for passengers are ofhighquality. often to berecycled, astheproducts confiscated from Parliament putforward apostulate to allow thiswaste Cantonal Zurich the 2009 November In decreased. not communicated, thevolume ofwaste from thisarea has Al-though these security regulations are continually being (e.g. confiscated liquids) accounted for 272 Environmental protection |Waste &waste water (aprons, runways andtaxiways) (%) Untreated water from de-icingoperations thatiswashed away De-icing saltsfor othersurfaces (t/a) to go ahead,referendums willhave to beheldinthepartner The existing waste concept, whichoutlinestherequirements which is a new record. Waste resulting from security checks tonnes, 168 totalled bottles PET collected of volume services (previoushandling/in-flight year 360grams). The aircraft by passenger per of disposed were waste of tonnes) andwood (564 paper/cardboard (2,411 be recycled. The mainseparately collected recyclables were accounted for around waste in2009(minus0.5 percent versus 2008).Refuse Zurich generated Airport atotal of14,649 tonnes of Waste volumes Surface de-icingagents, solid(m Runway androad de-icingagents, formiate solution (m Aircraft de-icingsolutions(m Use ofde-icingagents at ZurichAirport 57 percent. Some 38 percent could 3 /a) tonnes). An average of 340 grams tonnes), organic waste (1,306 (1,306 waste organic tonnes), 3 /a) 3 /a) tonnes.

metres of runway and road de-icing agents (plus 138 138 (plus agents de-icing road and runway of metres cubic 1,800 and year) previous the versus percent A total of2,404 m³ofaircraft de-icingagents (plus112 Waste water from de-icingoperations untreated waste water from de-icingoperations. of proportion the reduce further to order in system plans to, amongotherthings,expand thespray irrigation was revised in2009. Over thecoming years, there are plans for rainwater andwater from de-icinginparticular, The General Drainage Plan(GEP), whichincludesthe treatment (to produce biogas). city ofZurich's sewage water treatment plantfor further and the glycol was recycled, oritwas transported to the was either treated in the airport's own distillation plant de-icing operations which contains high levels of carbon a natural way asitpasses through thesoil.Water from waste rainwater to be almost completely broken down in irrigation method allows the de-icing agents contained in was treated usingthespray irrigation system. The de-icing from water waste of m³ 124,123winter, Last Spray irrigationsystem winter 2008/2009. be attributed to theunfavourable weather conditions in sharp increase in de-icing agents and de-icing salts can 2008/2009 (previous year: 67 tonnes, 14percent). The or around 17 percent of the total amount used in winter aprons, runways andtaxiways amounted to 162 tonnes untreated carbon which is washed away from existing deicing agents contain propylene glycol. The amount of aircraft The solutions. formiate using exclusively parks. Surfaces usedfor flightoperations were deiced in themaintenance workshop, onroads andincar 600 tonnes ofconventional de-icingsaltswere alsoused percent) were usedinwinter 2008/2009. Anadditional 2008/2009 2,404 1,800 602 16.7 2 2007/2008 1,133 758 133 14 0 2006/2007 1,012

379 13.7

86 0 - 57 Environmental protection | Nature & landscape Environmental protection | Key environmental data

Zurich Airport: an area of unspoiled nature The typical elements, such as wetland meadows and Key environmental data Zurich Airport is spread over an area of around 880 marshland forest (forest which is partly in marshy areas), hectares, of which just under 760 hectares make up the are looked after in accordance with an annual maintenance Key environmental data 2009 2008 2007 non-public area. More than half of this area is not built plan. This is carried out by the cantonal office for nature NOX emissions in tonnes 1,053 1,092 1,012 on and is not directly utilised for aviation. This green space conservation in collaboration with Flughafen Zürich AG’s – Proportion from aircraft in tonnes 1) 907 933 876 includes nature conservation areas and grasslands. green area maintenance crew. VOC emissions in tonnes 451 380 362 – Proportion from aircraft in tonnes 263 264 250 CO emissions in tonnes 1,518 1,578 1,476 Nature conservation areas Flughafen Zürich AG is obliged to maintain the conservation – Proportion from aircraft in tonnes 1,353 1,381 1,281 The 74 hectare nature conservation area “Klotener Riet”, value of these areas. Ecological conservation and PM emissions in tonnes 22 23 20 which is located between runways 16/34 and 14/32, revaluation measures are being employed to counteract – Proportion from aircraft in tonnes 16 16 15 2) comprises around 34 hectares of low moorlands of national the ever-growing pressure on nature and wildlife. Some CO2 emissions in tonnes at Zurich Airport, scope 1 31,696 30,788 25,703 CO emissions in tonnes at Zurich Airport, scope 2 3) 2,630 2,638 2,320 importance. Together with the other nature conservation operational implications cannot be completely avoided, 2 CO emissions in tonnes at Zurich Airport, scope 3 4) 3,091,006 3,010,480 2,986,142 areas adjacent to the airport, “Altläufe der Glatt”, “Bachen- however, but only minimised. If protected habitats and 2 Overall energy consumption (MWh/a) 305,471 309,232 290,132 bülacher Allmend”, “Rütner Allmend” and “Goldentor”, the way in which they are used are adversely affected, the Annual water consumption in m3 645,049 649,707 578,993 this is what remains of the extensive former marsh law stipulates that an appropriate alternative must be Overall waste amount (tonnes) 14,649 14,730 14,154 landscape. provided. In this context, Flughafen Zürich AG has been – of which recyclable material (e.g. paper, cardboard, glass, wood) (%) 38.4 39.8 38.9 involved in the creation and ecological rehabilitation Waste from security checks (e.g. liquids) (tonnes) 272 283 338 of conservation projects in the area surrounding the Volume of waste per passenger (g) 5) 340 360 370 airport. For example this has resulted in the “Halbmatt” Number of residents 6) above alarm value for SLII 7) not available 3,711 3,331 conservation area to the North of the airport and the Number of residents above the impact value for SLII not available 40,474 41,769 Number of residents above the planning value for SLII not available 103,745 104,660 newlyconstructed riverbanks in the “Altläufe der Glatt” Zurich aircraft noise index monitoring value (ZFI) not available 49,035 46,329 area to the West of the airport. Number of noise monitoring terminals (in operation) 10 (9) 10 (9) 10 (9) Daytime aircraft noise levels 8) at NMT 1/3/6/10 (dB(A)) 9) 66/58/65/57 67/58/66/57 66/58/65/- Green areas and land management Number of registered flight path deviations/investigated 1,037/304 881/300 870/383 Flughafen Zürich AG is responsible for maintaining other Number of night flight movements (10 p.m. - 6 a.m.) 8,681 9,249 9,028 green areas. The aim of maintaining green areas is to – Proportion in the first hour (10 p.m. - 11 p.m.) 6,686 6,748 6,430 10) manage land so as to ensure the safety of flight operations. Number of special authorisations for night flights issued 77 158 67 – of which emergency, relief and rescue flights 46 38 46 The nature-oriented approach of managing these green – of which police, military and government flights 14 24 6 areas as extensive grassy meadows, which was introduced – of which various other types of flight 17 11 96 15 around ten years ago, is having a positive impact in two 2010 Sound Insulation Programme: Number of renovated properties 12) 2,420 2,310 2,170 respects. On the one hand, it reduces the bird strike risk4), Number of complaints and queries relating to noise 13) 2,977 3,719 3,896 as meadows make hunting for food particularly difficult for birds of prey. On the other hand, it promotes the development of a nutrient-poor cohesive meadow landscape 1) Flight operations in LTO cycle (up to 915 metres), taking into account effective engine power, APU, engine start up and airframe which is becoming something of a rarity in central 2) In accordance with the GHG Protocol: Flughafen Zürich AG’s own sources (vehicles, machinery, heating) Switzerland. The green areas also serve to connect up 3) In accordance with the GHG Protocol: Electricity sourced by Flughafen Zürich AG externally isolated conservation areas, thereby helping maintain 4) In accordance with the GHG Protocol: Aircraft in LTO cycle and complete route (outbound flight only), calculated by EUROCONTROL, other biological diversity by promoting biological exchange. emissions sources at the airport (handling, other heating) and all landside traffic in the vicinity of the airport (approx. 3 kilometres) for all modes of transport 5) Based on: Waste from aircraft handling/in-flight service 6) Encompassing noise contours of the day and night noise limits 7) Sensitivity level 2 in accordance with Art. 43 of the Federal Noise Abatement Ordinance 8) Energy equivalent continuous sound level of daytime aircraft noise (6 a.m. – 10 p.m.) 9) NMT=Noise Monitoring Terminal, 1=Rümlang, 3=Oberglatt, 6=Glattbrugg, 10=Nürensdorf 10) Special authorisations can be granted for urgent flights operating during the night-time curfew 11) 54 authorisations were issued for the EURO 2008 football championships 12) Number of buildings and properties which have been renovated to date 13) Includes complaints and enquiries relating to noise levels, flight light paths, development of the air traffic etc.

4 ) The term “bird strike” refers to collisions between aircraft and birds of prey/flocks of birds, which usually have both cost and safety implications. - 59 - Flugzeugenteisung

Anfahrtsplan Flughafen Zürich

Gates E

E

Gates A

Gates B Place: Runway intersection Zurich Airport Time: 10.30 a.m. Name: Edi Haller Job: Airport Guide Flughafen Zürich AG Tankstelle

- 61 - Corporate governance

Information in accordance with the Corporate Governance Apart from Flughafen Zürich AG, Kloten (securities no. Shareholder structure and voting rights Voting rights at the General Meeting of Shareholders Guidelines of SWX Swiss Exchange dated 17 April 1056796), which was listed on the SIX Swiss Exchange Entries in the share register are normally made up to 2002/29 March 2006. with a market capitalisation of 1.9 billion Swiss francs Major shareholders one week before the General Meeting of Shareholders. as of the balance sheet date, the consolidated group does As of 31 December 2009, the Canton of Zurich held With respect to the convening of the General Meeting of Group and capital structures not comprise any other listed companies, but it does 33.33 percent plus one share and the City of Zurich held Shareholders and inclusion of items on the agenda, no include the following unlisted companies: 5.00 percent of the company's shares/voting rights. There statutory regulations exist that deviate from the relevant Group structure were no other shareholders whose holdings exceeded 5 legal provisions. Deadlines and cut-off dates for including For details concerning the group operational structure, percent of the total number of shares with voting rights. items on the agenda are also not specified in the Articles please refer to the section on segment reporting (see There are no cross-holdings and no shareholder agreements of Incorporation. “Financial report”, “Consolidated financial statements of which the company is aware. according to IFRS”, “Accounting policies”, “Segment In accordance with the Articles of Incorporation, all reporting”). Change in control shareholders are entitled to appoint another registered The company's Articles of Incorporation contain an shareholder to act on their behalf at the General opting-out clause which stipulates that, in the event that Meeting of Shareholders upon presentation of a written Name Domicile Share capital Holding the threshold at which an offer is required in accordance power of attorney. APT Airport Technologies AG Kloten CHF 1,800,000 100% Flughafen Zürich AG with the provisions of the Swiss Stock Exchange Act Unique Betriebssysteme AG Kloten CHF 100,000 100% Flughafen Zürich AG should be exceeded, it shall be raised to 49 percent. A qualified majority in accordance with Article 704 of Unique Airports Worldwide AG Kloten CHF 100,000 100% Flughafen Zürich AG Unique Chile S.A. Santiago de Chile CLP 4,325 million 100% Unique Airports Worldwide AG No clauses exist regulating a change of control in favour the Swiss Code of Obligations is also required for the of members of the Board of Directors or Management following cases in addition to those defined in the above Board. legal provisions: • Amendments to the Articles of Incorporation Capital structure Limitation of transferability of shares and nominee • Easing or elimination of limitations with respect to The group's ordinary share capital amounts to 307,018,750 The changes in share capital, reserves and available registrations transferability of registered shares Swiss francs, which is divided into 6,140,375 fully paid-up earnings (financial statements according to the provisions Registration with voting rights is limited to 5 percent of • Conversion of registered shares into bearer shares registered shares with a nominal value of 50 Swiss francs of the Swiss Code of Obligations) during the past three the share capital. This limit applies both to individual each. All shares have the same dividend entitlements years are shown below: investors and groups of shareholders, with the exception Board of Directors and voting rights (as long as they have been entered in the of the Canton of Zurich (limit = 49 percent) and the share register accordingly). No approved or conditional City of Zurich (limit = 10 percent). Other exceptions may Election and term of office capital, no participation or dividend right certificates and be granted by the Board of Directors, specifically in Members of the Board of Directors are elected by the no outstanding convertible bonds or options existed as association with contributions in kind, participations, General Meeting of Shareholders for a term of office of of the balance sheet date. mergers and easing of tradability of shares on the one year. They may stand for re-election, although stock market. No exceptions were granted during the members of the Board of Directors are required to step year under review. down for age reasons at the General Meeting of (CHF 1,000) 31.12.2009 31.12.2008 31.12.2007 Shareholders that is held in the year in which they turn Share capital 307,019 307,019 307,019 The above limitations with respect to transferability are seventy. Legal reserves stipulated in the company's Articles of Incorporation, Premium 533,290 533,290 533,290 which may be amended by resolution of the General In accordance with Article 762 of the Swiss Code of General reserves 19,060 19,060 19,060 Meeting of Shareholders by a two-thirds majority of Obligations, the Canton of Zurich has a statutory entitlement Reserves for own shares 1,612 11,841 650 Other reserves 79,246 69,017 80,208 represented votes. Nominees are exclusively registered to appoint three of seven or eight, or four of nine persons Available earnings as shareholders without voting rights. to the Board of Directors. In the year under review, the five Profit brought forward 129,397 89,565 47,373 members to be elected by the General Meeting of Dividend payment for 2008/2007/2006 –30,640 –27,627 –18,405 Shareholders were elected by individual vote. Net profit 156,118 67,459 60,597 Total equity 1,195,102 1,069,624 1,029,792

For information concerning distribution of shares (no debentures are distributed), please refer to “Financial report”, “Consolidated financial statements according to IFRS”, “Notes to the consolidated financial statements”, note 2, “Personnel expenses”.

- 63 - Corporate governance

Members Elmar Ledergerber None of the members of the Board of Directors hold Nomination & Compensation Committee Swiss citizen; born in 1944; PhD (Economics); member executive positions at Flughafen Zürich AG, and none were Members: Kaspar Schiller (Chairman), Lukas Briner, Andreas Schmid of the Zurich City Council 1998–2009, Mayor of Zurich members of the Management Board of Flughafen Zürich Martin Wetter, Andreas Schmid. Swiss citizen; born in 1957; MA (Law); member of the from 2002; President of Zurich Tourism since 2009. AG or any of its group companies during the three financial Mövenpick Executive Board of Management from 1993 Member of the Board of Directors since 1998 (originally years prior to the period under review. The following Duties: This committee deals with all issues relating to to 1997 and then CEO of Jacobs AG (until 2000) and appointed to the Board of Directors of Flughafen- business relationships between members of the Board of nomination and/or removal of members of the executive Barry Callebaut AG (until mid–2002); Chairman of the Immobilien-Gesellschaft as part of the statutory entitlement Directors or the entities they represent and Flughafen management of the group, including their compensation Board of Directors of Barry Callebaut AG from 1999 to of the City of Zurich; elected by the General Meeting Zürich AG are deemed significant and thus worthy of and questions relating to succession planning. It defines the 2005; Vice Chairman of the Board of Directors of Barry of Shareholders in 2000). mention: principles of the group’s personnel and compensation Callebaut AG since December 2005; Chairman of the policies and ensures that these are duly complied with. It Board of Oettinger Davidoff Group since December 2007. Other activities and commitments: Vice Chairman of the • The Canton of Zurich – in the government of which is also responsible for assessing any potential conflicts Chairman of the Board of Directors since the 2000 Board of Directors of EMIG (Engros-Markthalle); President member of the Board of Directors Rita Fuhrer holds a of interest on the part of members of the Board of Directors General Meeting of Shareholders. of the Intercooperation Foundation Committee; Chairman seat – has contractually agreed with Flughafen Zürich or Management Board. of the Zurich Film Foundation. AG to assume the prefinancing for “old” aircraft noise Other activities and commitments: Chairman of the Board compensation payments (see “Risk management”, The executive bodies of Flughafen Zürich AG convene of Directors of Symrise AG; Chairman of the Board of Kaspar Schiller “Noise compensation and sound insulation measures”, meetings as required. For the Board of Directors this Directors of gategroup Holding AG; member of the Board Swiss citizen; born in 1947; PhD (Law); attorney-at-law; “Reduction and limitation of risks associated with means approximately ten meetings a year with an average of Directors of Karl Steiner AG. since 1978, partner in the legal practice of Schiller aircraft noise”). Furthermore, the Canton of Zurich has duration of approximately six hours, while the committees Rechtsanwälte AG, Winterthur. Elected to the Board of granted Flughafen Zürich AG a credit facility with a hold meetings approximately three times a year with an Lukas Briner Directors in 2004. duration of 10 years (2002 to 2012) within the scope average duration of between two and three hours. Swiss citizen; born in 1947; PhD (Law); clerk of the court of a framework credit agreement. The maximum in Uster (until 1979) and then legal consultant, deputy Other activities and commitments: none available amount of this credit facility corresponds The committees pass on recommendations and submit director and (since 2001) director of the Zurich Chamber to the total investments in engineering structures proposals to the Board of Directors and order clarifications of Commerce. Appointed to the Board of Directors in Ulrik Svensson relating to expansion stage 5, after adjustment for the to be carried out by internal or external offices, but they May 2005. Swedish citizen; born in 1961; Stockholm School of depreciation to be carried out on these investments. do not take any definitive material decisions. Economics; CFO at companies in London and Luxembourg The credit facility limit was 659.6 million Swiss francs Other activities and commitments: Chairman of the Board and then at Swiss International Air Lines AG (2003 to as of 31 December 2009. It is presently not being The Chairman and members of the Management Board of Directors of Zürcher Oberland Medien AG; Vice 2006); since 2006, CEO of Melker Schörling AB, Stockholm. used. and General Secretary are regularly invited to attend President of the “Greater Zurich Area” Foundation Board. Elected to the Board of Directors in 2008. meetings of the Board of Directors, while the CEO, CFO, Internal organisation head of Finance, Risk and Supply Management and the Martin Candrian Other activities and commitments: Member of the Board Chairman of the Board of Directors: Andreas Schmid General Secretary are invited to attend meetings of the Swiss citizen; born in 1945; since 1979, lessee of of Directors of Assa Abloy AB, Loomis AB, AAK AB, Vice Chairman of the Board of Directors: Lukas Briner Audit & Finance Committee, and the CEO, the head the “Bahnhofbuffet” Zurich, Chairman of the Board of Niscayah Group AB and Hexpol AB. of Services, head of Human Resources and the General Directors and Chief Executive Officer of Candrian The Board of Directors has formed the following Secretary are invited to attend meetings of the Nomination Catering AG. Elected to the Board of Directors in 2004. Martin Wetter committees: & Compensation Committee. Swiss citizen; born in 1946; PhD (Law); with Credit Suisse Other activities and commitments: Chairman of the Group from 1973 to 2005 (focus on commercial and Audit & Finance Committee Board of Directors of Candrian Seafood AG and AG financial participations divisions). Member of the Board Members: Martin Candrian (Chairman), Rita Fuhrer, Suvretta House. of Directors from 1993 (former Flughafen-Immobilien- Elmar Ledergerber, Ulrik Svensson, Andreas Schmid. Gesellschaft) to 2004; then in July 2005, appointed to Rita Fuhrer the Board of Directors by the Canton of Zurich. Duties: This committee is responsible for the close Swiss citizen; born in 1953; member of the Council of supervision of the annual accounts and monitoring of the Canton of Zurich since 1995. Appointed to the Board Other activities and commitments: Chairman of the compliance with the accounting policies, evaluation of of Directors in 2004. Board of Directors of Zürcher Freilager AG; Member of financial reporting and auditing activities, assessment of the Board of Directors of Imbrex Holding. findings obtained from audits and recommendations Other activities and commitments: Member of the Board by the auditors, definition of the group’s financing policy of Directors of Axpo and EKZ; President of the “Greater General Secretary and examining business transactions of special importance. Zurich Area” Foundation Board; Member of the Advisory Thomas Egli Council of the Swiss National Bank.

- 65 - Corporate governance

Competence regulations Management Board Michael Schallhart Based on the Articles of Incorporation, the Board of Swiss citizen; born in 1962; Head of Services; MA Directors has issued a set of organisation regulations in Members (Economics); various positions in the insurance and tourism accordance with the provisions of Article 716b of the sectors, and for a non-profit organisation; member of the Swiss Code of Obligations. Alongside the duties that are Thomas E. Kern Management Board and head of Services division at FIFA non-delegable by law, the Board of Directors has retained Swiss citizen; born in 1953; Chief Executive Officer (CEO); (Fédération International de Football Association) from numerous fundamental strategic competencies, in particular MA (Law); expansions manager (from 1984 to 1985) 2000 to 2007; joined Flughafen Zürich AG in November those associated with the rights and obligations arising and executive manager (from 1986 to 2000) at Interio 2008. from federal civil aviation concessions, specifically deciding AG; executive manager at Globus Warenhäuser (2001) on significant licence applications, major budget approval and CEO of the Globus group from 2002 to 2006. Other activities and commitments: none requests, petitions for amendments to operating regulations Member of the Board of Directors from the 2006 General and modifications of fees and charges, while entrusting Meeting of Shareholders up until 22 November 2007. Daniel Schmucki the Management Board with the general management of CEO since 15 January 2008. Swiss citizen; born in 1968; Head of Finance (CFO); the company. Qualified accountant/controller; various finance and Other activities and commitments: controlling positions in the Bosch group (1994 to 1999) Information and controlling tools Member of the Board of Directors of Schauspielhaus and at Weidmann International (1990 to 1994). Joined The Management Board reports to the Board of Zürich AG and Lorze AG. Flughafen Zürich AG (former Flughafen-Immobilien- Directors by means of monthly updates via the Management Gesellschaft, FIG) in 1999 as head of Controlling; also Information System. This tool encompasses traffic Peter Eriksson responsible for Investor Relations & Treasury since 2003; deve­lopments, marketing activities, non-aviation business, Swedish citizen; born in 1955; Head of Marketing & Real assumed his position on the Management Board in April personnel controlling, balance sheet management, project Estate; business and management studies, specialising in 2008. information and participation management. Comprehensive commerce and retail; 1976 to 2001, various management financial and business reports are also prepared on a positions in the area of marketing and sales at IKEA, Other activities and commitments: none quarterly basis, and the Board of Directors is kept informed Top Tip AG, Jelmoli AG and The Nuance Group AG; joined about anticipated developments by means of rolling Flughafen Zürich AG in April 2002. Stephan Widrig long-term planning. Swiss citizen; born in 1972; Head of Corporate Development; Other activities and commitments: none MA (Business Economics), University of St. Gallen; In close collaboration with the Audit & Finance Committee, business consultant with Arthur Anderson (1997 to 1999); group auditors KPMG worked with Internal Audit in Rainer Hiltebrand joined Flughafen Zürich AG (former Flughafendirektion, examining the internal control system. In the year under Swiss citizen; born in 1954; Head of Operations; Qualified FDZ) in 1999 with special responsibility for real estate review, within the internal auditing process, which is airline pilot (SLS); joined Swissair as pilot in 1978 (DC–9, operations; 2005 to 2008, Chief Financial and Commercial designed to be an independent instrument of the Board MD–80, MD–11, A320, A330); from 1999, chief pilot of Officer of Bengaluru Airport, India. Returned to Flughafen of Directors and Audit & Finance Committee for entire Swissair fleet; joined Flughafen Zürich AG in April Zürich AG and assumed his position on the Management performing their duty of overall supervision, the handling 2002. Board in July 2008. of noise compensation claims and a number of security aspects in the IT area were reviewed, for example. Follow- Other activities and commitments: none Other activities and commitments: none up activities to previous audits also took place. Internal Audit reports directly to the Chairman of the Audit & In the year under review there were no management Finance Committee. agreements associated with the assignment of management duties to third parties.

- 67 - Corporate governance

Remuneration, participation and loans No company shares were allocated to members of the Auditors Board of Directors during the year under review. The audit mandate is awarded each year by the General Specification and scope of remuneration Meeting of Shareholders. The current auditors first Remuneration of active members of the Board of Directors As of 31 December 2009, the number of company assumed their mandate in 1992 (for the former Flughafen is based on an annual lump sum plus payments for shares held by members of the Management Board and Immobilien Gesellschaft, “FIG”) at which time the old attending meetings. The applicable amounts are specified associated parties was 4,144. company law was still in effect. The current chief auditor by the Board of Directors as proposed by the Nomination has been responsible for this mandate since 2007. & Compensation Committee. There are no participation As of 31 December 2009, the number of company shares programmes for members of the Board of Directors. held by members of the Board of Directors and associated The fee charged by the auditors for the year under review parties was 523 (this figure does not include the holdings amounted to 401,000 Swiss francs (2008: Swiss francs Remuneration of members of the Management Board is of the Canton and the City of Zurich, as cited under 372,000). The auditors also charged a total of 31,000 based on individual employment contracts and comprises “Major shareholders”). Please refer to “Financial report”, Swiss francs (2008: Swiss francs 14,000) for services a fixed salary and a variable performance component that “Consolidated financial statements according to IFRS”, beyond the scope of the audit mandate. mostly takes the form of shares in the company that are “Notes to the consolidated financial statements”, note 2, blocked for a period of four years. The amounts concerned “Personnel expenses” and note 22.5, “Related parties”, The Audit & Finance Committee is responsible for are specified by the Board of Directors as proposed by and “Financial report”, “Financial statements according to supervising and controlling external audits. It formulates the Nomination & Compensation Committee. the Swiss Code of Obligations”, “Notes to the financial the priorities for the main and interim audits, and statements”, note 14, “Related parties”. assesses and analyses auditors’ reports. The auditors are For details concerning the total remuneration paid during also invited to attend meetings of the Audit & Finance the year under review, please refer to “Financial report”, There are no options on the company shares. Committee as necessary. “Consolidated financial statements according to IFRS”, “Notes to the consolidated financial statements”, note 2, Other fees and remuneration Information policy “Personnel expenses” and note 22.5, “Related parties”, No member of the Board of Directors or Management Shareholders regularly receive information about the and “Financial report”, “Financial statements according Board received any remuneration during the year under company and its activities in the Interim Report and to the Swiss Code of Obligations”, “Notes to the financial review for services provided to Flughafen Zürich AG Annual Report, and ongoing developments are reported statements”, note 14, “Related parties”. or any of its group companies, the total of which would on in the form of news flashes. equal or exceed half the normal remuneration of the Share allocation and holdings person concerned. Further information is available on the Investor Relations For the year under review, members of the Management page of our web site: www.unique.ch, or from 15 April Board are entitled to shares in the company equivalent Loans to executive personnel 2010, www.zurich-airport.com/investorrelations to 428,581 Swiss francs (2008: 324,664 Swiss francs) as There are no outstanding loans granted by the company part of their respective salaries. The number of shares to members of the Board of Directors or Management Contact address: to be granted cannot be precisely calculated yet since the Board. Flughafen Zürich AG number depends on the share price at grant date. If the P.O. Box, CH 8058 Zurich-Airport shares had been granted as of year-end, a total of 1,377 would have been distributed (2008: 1,302). For details, Investor Relations: please refer to “Financial report”, “Consolidated financial Michael Ackermann, [email protected] statements according to IFRS”, “Notes to the consolidated From 15 April 2010, [email protected] financial statements”, note 2, “Personnel expenses” and note 22.5, “Related parties”, and “Financial report”, Corporate Communications: “Financial statements according to the Swiss Code of Sonja Zöchling, [email protected] Obligations”, “Notes to the financial statements”, note From 15 April 2010, [email protected] 14, “Related parties”.

- 69 - Flugzeugenteisung

E Anfahrtsplan Flughafen ZürichGates

E

A Gates

B Gates

Place:

VIP Lounge elle Tankst Zurich Airport Time: 6.00 p.m. Name: Ian Wilmot Job: Creative Director

- 71 - Risk management

Flughafen Zürich AG has set itself the strategic goal of • Specialised units Since 2009 the risk management organisation has Both the Zurich Cantonal Council and the Cantonal formulating a comprehensive risk management system Specialised units perform specific risk-related produced a compliance report twice annually at the Parliament decided to declare the counterproposal and is committed to carrying out uniform and systematic cross-section functions within the group (e.g. cash request of the Chief Financial Officer and with the aid partially invalid due to infringement of unity of risk management in the future. For Flughafen Zürich AG, management, operational safety, occupational of information from those in charge of the processes. substance and only to submit the valid parts of the risk management means approaching and managing risk safety and health, information security, fire prevention, This report covers all thematic areas and is submitted initiative to popular vote. The VFSN has submitted in a clearly defined and conscious manner, thereby contingency planning) co-ordinated through the to the Management Board and Board of Directors. a complaint against this decision to the Federal Supreme securing transparency with regard to all risks associated Risk Management Centre. Court. No ruling has yet been made and it is thus still with its business activities, and constantly improving and Current risk situation not certain when the vote will take place. monitoring the group’s risk situation. The risk management organisation periodically reviews The current risk situation is characterised primarily by the risk management system in order to ensure that any the following factors: The extensive investigations conducted as part of the SIL Practical management tool changes in the commercial and regulatory environment, process (Civil Aviation Infrastructure Plan) have shown Flughafen Zürich AG has its own risk management system and in the corporate structure, are adequately reflected. 1. Legal issues that flight operations involving an increased number of which serves as one of its corporate governance tools. Various internal and external political restrictions landings from the east and take-offs towards the north It came into effect on 1 December 2000, and functions Risk reporting encompasses detailed descriptions of each could mean that Flughafen Zürich AG will not be able could reduce the number of persons who are exposed to as a valuable practical tool for managing corporate risk. identified risk, together with an assessment of the to fully utilise its infrastructure and would need to aircraft noise in excess of the tolerance limits. To It comprises the following components: probability of occurrence as well as of potential operational finance additional­ investments and costs. These include: increase the number of approaches from the east it would and/or financial impacts. A plan of measures is also be necessary to extend the length of runway 28 from • Risk policy objectives and principles defined, which outlines how each identified risk can 1.1 Cantonal initiatives calling for modification of its current 2,500 metres to around 2,950 metres. If the • Risk management organisation be minimised. The risk management organisation Zurich cantonal airport legislation initiative is accepted by the electorate, the extension • Risk management process (method for managing risk) constantly monitors the implementation of the defined At the end of 2009 only the cantonal government initiative of runway 28 would be blocked under current law. If the • Risk reporting and risk dialogue measures. calling for a ban on the new construction and expansion counterproposal is accepted, no new flight paths could • Auditing and review of the risk management system of runways was still pending. be introduced over densely populated areas. • Risk culture Compliance management The cantonal government initiative calling for a restriction Flughafen Zürich AG operates a compliance management of flight movements to 320,000 a year and a night-time 1.2 Zürcher Fluglärm-Index ZFI (Zurich Aircraft Risk management organisation forms the backbone of system as another important component of its integrated curfew of at least eight hours was rejected by the Zurich Noise Index) this system and it encompasses the following roles and risk management process. The aim of compliance Cantonal Parliament on 23 February 2009 by a large The Cantonal Council approved the report of the local competencies: management is to systematically register, obtain majority. This initiative has therefore been definitively Department of Economics on the Zurich Aircraft Noise information on and comply with legal and regulatory defeated. The cantonal people's initiative calling for a fair Index (Zürcher Fluglärm-Index, or ZFI) in 2008. The • Board of Directors, Management Board and Chief provisions as well as with internal corporate guidelines and balanced distribution of aircraft noise around Zurich number of persons exposed to high levels of aircraft noise Risk Officer and ethical principles. Airport was rejected by the Zurich cantonal electorate in 2008 exceeded the ZFI upper limit of 47,000 for the The Board of Directors and Management Board bear on 27 September 2009. first time since 2000. Last year a total of some 49,000 the overall responsibility under company law for securing Compliance with the relevant laws, guidelines and people were exposed to high levels of aircraft noise the group’s existence and profitability. The Board principles is controlled in 34 different thematic areas, The government initiative calling for a ban on the new during the day and/or at night. The Cantonal Council of Directors is responsible for the overall supervision with a specialist responsible for processes in each of construction and expansion of runways, which was also approved the package of ZFI measures that was of risk management, and it fulfils this duty with them. In their particular thematic area, each specialist submitted by a group of municipalities in November 2006, commissioned in 2008. the aid of internal audits. The Chief Financial Officer is responsible for (1) defining necessary actions, such calls for the Canton of Zurich to make a submission to is simultaneously the Management Board’s risk as providing the information, guidelines and checklists the federal government and the Board of Directors of Flug- The package consists of a set of measures for flight management officer (Chief Risk Officer). required by line managers and individual employees, (2) hafen Zürich AG to prevent the construction of new operations and another set for land-use planning/living performing the controls defined for compliance audits runways and the expansion of existing ones. The Zurich quality. Technical progress in aircraft engine construction • Risk Management Centre and (3) systematic reporting. Line management has Cantonal Council recommends that the initiative be and navigation standards are the basis on which the The Risk Management Centre is headed by the Corporate ultimate responsibility for compliance with the law, rejected. On 23 February 2009, the Cantonal Parliament measures for flight operations are formulated. The Risk Manager, who is answerable to the Chief Risk guidelines and principles. A Compliance Steering resolved to support the initiative. A referendum contesting concept lists short-, medium- and long-term measures Officer. It supports line management in all matters Committee drawn from all areas of the organisation and the Cantonal Parliament's decision was launched by the such as adjustments to noise charges, fleet renewal and relating to risk management and is responsible for headed by the Chief Risk Officer monitors the rigorous conservative parliamentary factions. At the same time restrictions on Chapter 3 aircraft that no longer meet the the operation and further development of the risk and uniform implementation of compliance management an association opposing the flight path from the south latest noise emission standards. In addition, it envisages man­agement system. procedures. (“VFSN”) submitted a referendum with a counterproposal various concrete operating measures designed to reduce which would require the Canton to exercise its authority the variance in the individual flight routes or that address • Line management (divisions and corporate centres) to prevent new flight paths (versus the statusof 2000) the use of new navigation technologies. Line units and individual line managers bear over densely populated areas and to oppose the the responsibility for risks within the scope of the risk construction of high-speed taxiways. management­ system (risk owner concept).

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The set of measures for land-use planning/living quality Based on the chosen alternatives the Federal Office of 1.6 Legal proceedings 3. Additional security regulations is based on a concept of forward-looking management of Civil Aviation will create the detailed Civil Aviation In its ruling of 10 December 2009 on the airport's The introduction of the new regulations governing access land-use around the airport. The process associated with Infrastructure Plan for Zurich Airport together with the provisional operating regulations the Federal Administrative to the security-sensitive area of the airport on 1 July 2008 a partial amendment will be initiated at the end of 2009 Federal Office for Spatial Development. Following this Court essentially confirmed the present state of flight assured compliance with the provisions of EU Directive or beginning of 2010, and will be co-ordinated with the it will be available for public inspection. The plan should operations (in particular the operating times and runway 2320/2002 “Staff screening”, which had become Civil Aviation Infrastructure Plan for Zurich Airport. Cantonal be approved by the Federal Council in 2012 according use). Several involved parties have appealed against binding for Switzerland within the scope of the bilateral planning guidelines recommend the establishment of to present planning. Along with the operating regulations this ruling to the Swiss Federal Supreme Court. If the agreements. The implementation of this EU Directive a demarcation line, in addition to the provisions of the based on it, it will set out the scope of development for Supreme Court were to rule as the final instance, even resulted in investment costs of around 30 million Swiss Federal Noise Abatement Ordinance, to ensure that in Zurich Airport. partially in favour of any application to restrict flight francs in the period from 2007 to 2009. In addition, areas where the tolerance level for noise immissions is operations, which we do not expect, this would both the direct and indirect operating costs have increased reached or exceeded no new residential areas and no 1.4 Rulings by supervisory authorities relating adversely impact operations. due to the required systematic security checks. new zones can be created or existing zones rezoned or to landing and take-off procedures upgraded to residential zones. In the long term all Rulings which might be made on the basis of safety 1.7 Revision of the Swiss Federal Civil Aviation Act Revised EU security regulations will enter into force at the residential properties within this demarcation zone are considerations, for example, could give rise to further One of the aims behind the ongoing revision of the Swiss end of April 2010 and will be implemented immediately to be equipped with high-quality sound insulation. The capacity restrictions and thus have an impact on Federal Civil Aviation Act is to revise the legal basis for in Switzerland as well. As a result, some security measures package of measures for land-use planning/living quality business development. the structure of airport charges. The consultation procedure will be eased and others will become marginally stricter. therefore plans incentives to encourage improvements for this revision was concluded in October 2008 and Since the attempted terrorist attack on a passenger plane to existing residential buildings, such as advisory services 1.5 Regulation of the use of South German it will be debated in the spring session of the National during the approach to Detroit airport in December and financial support for pilot projects by the Canton airspace by aircraft landing at or taking off from Council in 2010. Further details will be regulated in an 2009 the introduction of body scanners is back on the of Zurich. Zurich Airport ordinance. discussion table in Europe. Regulators are also focusing Germany has issued a unilateral ordinance on the use of increased attention on ground security, particularly car Zurich Airport is surprised that the target ZFI level was South German airspace, against which Switzerland has The new legislation will re-specify the basis for and method bomb attacks. reached in the same year as the referendum decision, lodged a complaint with the European Court of Justice. No of calculating airport charges. A change in the basis that since this was neither intended nor expected by the Canton ruling has yet been made, but German Federal Chancellor is currently used for calculating charges is likely to result. Additional security regulations may also give rise to or the electorate. Zurich Airport has supported the Merkel and Swiss Federal President Couchepin signed The new ordinance containing the detailed regulations in­creasing security costs and reduced revenue from Canton in analysing the causes and developing potential an agreement on 29 April 2008 according to which will probably not enter into effect until 2011. commercial activities in the future. Given the delay between corrective measures, but it does not find it necessary Switzerland and Germany would jointly conduct an the time at which such costs arise and the earliest to make any changes to the current organisation of flight analysis of noise levels at Zurich Airport. The study, 2. Falling demand possible refinancing via security charges, a negative operations. If the monitored noise levels were to rise which was performed by the German Aerospace Center The effects of the ongoing economic crisis will be felt by impact on the result cannot be ruled out. further, however, the possibility cannot be excluded that (Deutsches Zentrum für Luft- und Raumfahrt, “DLR”), many sectors, and the specific impacts on Switzerland’s in the medium term the Canton of Zurich might demand, was presented to the public in October 2009. The report economy, in particular on air travel, are very difficult 4. Hub carrier either through its position on the Board of Directors or states that under German law the protection zones must to predict. Flughafen Zürich AG has prepared itself for a Like any other hub airport, Zurich greatly depends on the via the federal government, that the airport take corrective be concentrated solely on Swiss territory. Based on the variety of scenarios and will initiate corresponding operational and financial development of its hub carrier. action, which could potentially have a negative impact noise analysis and the Civil Aviation Infrastructure Plan measures in good time. The national airline, Swiss International Air Lines AG, is on the airport's development. options, both countries will now commence talks on easing the main client of Flughafen Zürich AG. It accounts for the provisions of Germany's implementing ordinance. Experience over the past few years has shown that civil approximately 56 percent (2008: 53 percent) of Zurich 1.3 SIL process (Civil Aviation Infrastructure Plan) Further tightening of the unilateral ordinance is not an aviation is a growing though highly volatile business that Airport's flight movements and approximately 59 as the basis for legal and planning certainty issue at present. If Germany should nevertheless tighten reacts sensitively to external occurrences such as acts percent (2008: 57 percent) of its passenger volume. Thanks Via the Civil Aviation Infrastructure Plan and the related the ordinance, this could lead to a further restriction of of terrorism and epidemics (SARS, bird flu). Such events to the successful integration of Swiss into the Lufthansa planning guidelines the federal government and the capacities and substantially hamper the airport's could potentially cause a temporary fall in demand at group, the risk of losing the hub carrier for economic cantons co-ordinate their airport and residential planning business development. Zurich Airport. reasons may be regarded as low. However, in a difficult strategies with each other. On the basis of studies conducted economic environment capacity reductions cannot be primarily by specialists from Flughafen Zürich AG to ruled out altogether. produce the Civil Aviation Infrastructure Plan for Zurich Airport, the Federal Office of Civil Aviation (FOCA) examined an extensive range of alternatives. The Federal Department of the Environment, Transport, Energy and Communications (DETEC) decided to continue pursuing three alternatives (two of which are based on the existing runway structure and one requiring an extension of runways 28 and 34). By deciding not to pursue the option of securing land for a parallel runway, DETEC abandoned the very alternative that would have been able to cope with demand in the long term, even though it was recommended by the spatial planning experts commissioned for the task. - 75 - Risk management

5. Noise compensation and sound insulation measures 5.2 Formal expropriations Based on the above estimates of noise-related costs and 5.4 Reporting noise-related data in the consolidated In accordance with Articles 679 and 684 of the Swiss With respect to formal expropriations, the rulings on the initiation of the prefinancing by the Canton of Zurich, financial statements according to the International Civil Code in conjunction with Article 36a of the Swiss fundamental issues by the Federal Supreme Court in the in the consolidated financial statements as of 30 June Financial Reporting Standards (IFRS) Federal Civil Aviation Act and the provisions of the first half of 2008 enabled Flughafen Zürich AG to 2008, the amount of 125.5 million Swiss francs (present The revenue from noise charges collected on a “user Federal Expropriation Act, Flughafen Zürich AG has to estimate the total costs for the first time, in spite of the value) was recognised as a provision for compensation pays” basis, the costs associated with sound insulation bear the costs associated with formal expropriations remaining uncertainty factors influencing the accuracy for formal expropriations (nominal amount, 150.1 million measures and operating costs relating to aircraft noise and, in accordance with Articles 20 ff of the Environmental of this estimate. Swiss francs). This amount concerns the “new” noise- are recognised in the income statement. Protection Act, it has to bear the costs relating to sound related liabilities of Flughafen Zürich AG. The present insulation measures. According to existing legal doctrine, Based on the fundamental issues on which the Supreme value of the future payments was at the same time 5.4.1 Sound insulation measures one of the prerequisites for any noise-related claim is Court has ruled to date, the reliably estimated noise- recognised as an intangible asset from the right of formal The costs for sound insulation measures are recognised that the noise thresholds for commercial airports effective related costs (“base case”) as of 30 June 2008 amounted expropriation. as a provision as soon as they can be reliably estimated since 1 June 2001 are exceeded. The operating licence to a total of 759.8 million Swiss francs (including formal and if they are undisputed or if the company has assumed and environmental protection laws form the basis for expropriations, costs for sound insulation measures and Subsequent to this, on 26 May 2009 the Federal a constructive obligation. refinancing the costs arising in association with such all related operating costs). This means that the total Administrative Court corrected a decision by the Federal claims via civil aviation charges (noise charges and special estimated costs associated with formal expropriations Assessments Commission of 17 December 2007 that 5.4.2 Formal expropriations surcharges on passenger fees). were below the previously disclosed potential costs had set the date for the foreseeability of an eastern With the award of the operating licence, Flughafen Zürich (in the form of a risk assessment) of between 800 million approach as 1 January 1961. The Federal Administrative AG was also granted a right of formal expropriation 5.1 Sound insulation measures and 1.2 billion Swiss francs. Court changed this date to 23 May 2000. After a of property owners exposed to aircraft noise. This right There is neither an approved sound insulation concept detailed examination, Flughafen Zürich AG decided to of formal expropriation was granted on condition that nor a valid report on noise levels for Zurich Airport that Since as of the middle of the year, despite the estimate appeal this decision to the Federal Supreme Court. the airport operator bears the costs associated with would form the legal basis concerning the nature and of 759.8 million Swiss francs stated above, the total compensation payments. This right is capitalised as an extent of sound insulation measures in the airport’s vicinity. expected noise-related costs exceeded the threshold of Based on the rulings pronounced to date by the Federal intangible asset. Capitalisation takes place at the time However, the Federal Supreme Court has ruled that this 1.1 billion Swiss francs in the worst case (“negative case”), Supreme Court concerning fundamental issues, Flug- at which the probable total costs can be estimated based should not prevent the holder of the operating licence from the prefinancing by the Canton of Zurich for “old” noise- hafen Zürich AG is abiding by its original estimate of on final-instance court rulings, so that the cost can initiating the implementation of such measures in those related liabilities entered into effect on 30 June 2008 in 30 June 2008 concerning total noise-related costs in be reliably estimated in accordance with IAS 38.21. The areas in which they are not the subject of dispute. The accordance with the supplementary agreement (see the amount of 759.8 million Swiss francs. This estimate timing of capitalisation may vary from region to region extent and realisation of such measures may provisionally point 5.7 below). This was subject to the condition that was based on a variety of assumptions, such as pending around the airport. At the same time as an intangible be defined by Flughafen Zürich AG itself, or will depend the still pending fundamental issues were decided legal issues without a last-instance ruling. The date of asset is recognised at the present value of the expected on the future definitive operating regulations. To date, against Flughafen Zürich AG. In return for bearing the the foreseeability of the eastern approach was another future payments, an equal amount is recognised as a Flughafen Zürich AG has spent a total of 107.7 million risk and for financing the “old” noise-related liabilities, of these assumptions. As of the balance sheet date, provision. Any future re-estimates of the probable total Swiss francs on sound insulation measures. On the basis the Canton of Zurich received a portion of the Airport Flughafen Zürich AG had recognised costs for formal costs will adjust both the intangible asset and the related of the temporary operating regulations submitted on of Zurich Noise Fund as of 30 June 2008 (115.4 million expropriations amounting to 233.3 million Swiss francs provision. The intangible asset is amortised using the 31 December 2003, the remaining costs associated with Swiss francs). This amount was recognised in the and had recognised provisions for formal expropriations straight-line method over the remaining duration of the sound insulation measures (insulation in other areas, consolidated financial statements as an intangible asset of 130.8 million Swiss francs and provisions for pending operating licence (i.e. until May 2051). remuneration of costs to house owners who have installed arising from the right of formal expropriation, and sound insulation costs of 115.6 million Swiss francs. sound insulation windows at their own expense) will represents a portion of the costs for “old” noise-related presumably be around 132.3 million Swiss francs. Flug- liabilities, which since of 1 July 2008 have been covered More detailed information on the reporting of noise- hafen Zürich AG is drawing up a concept for how to by the Canton of Zurich, but until 30 June 2008 were related costs may be found in the financial section of reimburse costs incurred by home owners for sound financed by Flughafen Zürich AG through revenue from this annual report. insulation measures. collected noise charges. As a result of the assumption of “old” noise-related liabilities by the Canton of Zurich, 5.3 Refinancing and competitiveness Flughafen Zürich AG is no longer required to recognise The refinancing of costs arising in association with air­craft a provision for these “old” noise-related liabilities. noise is to be carried out via special noise-related revenue. The most important source of revenue for refinancing is Also as of this date, the Canton of Zurich is to receive the noise-related passenger charge of 5 Swiss francs. If a 47 percent share of the revenue from noise charges the costs should significantly exceed the stated estimate, in accordance with the supplementary agreement. this charge would have to be raised in the medium term Consequently, this portion of revenue from noise charges in order to cover the anticipated costs. The costs for will no longer appear in the income statement of formal expropriations are recognised as an intangible Flughafen Zürich AG. asset.

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5.5 Reporting noise-related data in the financial state- 5.6.2 The risk of impacts of noise-related costs on 5.7.2 Under the supplementary agreement, in the event ments according to the provisions of the Swiss Code the consolidated financial statements (according that, upon payment of the first formal expropriations, the of Obligations (OR) to IFRS) and the financial statements according to the risk should arise that in the worst case (“negative case”) Costs associated with formal expropriations qualify as provisions of the Code of Obligations (OR) the total expected costs associated with aircraft noise an intangible asset in accordance with the Swiss Code of The consolidated financial statements (IFRS) and the (formal expropriations, costs for sound insulation and all Obligations. They are capitalised not later than the time financial statements according to the provisions of related operating costs) may exceed 1.1 billion Swiss at which the counterparty has attained an assertable the Code of Obligations could be negatively influenced francs (threshold), the Canton of Zurich would assume claim. An equal amount is also recognised as a provision depending on the amount of effective costs and any the prefinancing of all “old” noise-related liabilities. “Old” at the same time. Adequate provisions are recognised future changes in applicable accounting standards. With noise-related liabilities are liabilities that came into being for liabilities arising from sound insulation measures. respect to the consolidated financial statements, any prior to June 2001, up to which date the Canton of Zurich Amortisation of capitalised costs for formal expropriations such negative influences could affect standard guarantees was holder of the operating licence, therefore making it is based on the consolidated financial statements at and covenants in regard of outstanding financial liabilities. liable for such claims in an external capacity. As a result least. of the adoption of “old” noise-related liabilities by the Flughafen Zürich AG is addressing these risks as follows: Canton of Zurich, the company is no longer required to Any balance of revenue from noise charges after recognise a provision for these “old” noise-related liabilities, deduction of noise-related costs (compensation for 5.7 Reduction and limitation of risks associated with and the corresponding costs will therefore no longer formal expropriation, sound insulation measures, aircraft noise be recognised as an asset. operating costs, financing costs and amortisation) is On 8 March 2006, Flughafen Zürich AG and the Canton transferred to provisions for aircraft noise. of Zurich signed a supplement to the merger agreement 5.7.3 The threshold is subject to an annual adjustment dated 14 December 1999 regulating the sustainable mechanism based on the development of the equity 5.6 Risks for Flughafen Zürich AG in association with reduction and limitation of risks to Flughafen Zürich AG of Flughafen Zürich AG. As of 31 December 2009, the aircraft noise associated with aircraft noise. The main content of this threshold was above the original level of 1.1 billion Swiss Flughafen Zürich AG has the right to refinance any costs supplementary agreement is as follows: francs, but has no effect on the prefinancing by the that may arise in association with aircraft noise through Canton of Zurich. charges. This means that our ability to refinance such 5.7.1 Flughafen Zürich AG is obliged to implement costs is secured over the long term. There are two measures by means of which the ability to tolerate balance 5.7.4 In the event that, in the course of the legal asso­ciated risks for the company that have to be taken sheet and financing risks associated with aircraft noise proceedings,­ the risk cited in point 5.7.2. should definitively into account: up to approximately 1.1 billion Swiss francs can be assured. fall below the level of 1.1 billion Swiss francs (threshold), On 11 April 2006 the Board of Directors asked the Flughafen Zürich AG will assume the remaining “old” 5.6.1 The risk of a financing gap General Meeting of Shareholders to approve a capital noise-related liabilities and associated charges. If the noise-related costs should arise sooner than increase with a market value of approximately 300 million anticipated by Flughafen Zürich AG, or prove to be higher Swiss francs in order to strengthen the company’s equity. The objective of this agreement is therefore to limit the than expected, this could result in a financing gap The capital increase of 10 May 2006 resulted in a net overall noise-related risk of Flughafen Zürich AG to that Flughafen Zürich AG might not be able to cover inflow of funds to the company amounting to 310.3 million “new” noise-related liabilities. The capital increase and £with available credit limits. Swiss francs. Since Flughafen Zürich AG did not need to a new special credit limit created the accounting use these funds in the immediate future, the outstanding and financial prerequisites for bearing any noise-related debt owed to the Canton of Zurich amounting to 300 liabilities up to 1.1 billion Swiss francs. million Swiss francs was paid back prematurely and without any additional costs. Furthermore, Flughafen Zürich AG obtained a credit limit of 200 million Swiss francs to cover any financing gap that may arise.

- 79 - Consolidated financial statements according to IFRS Consolidated income statement 82 Consolidated statement of comprehensive income 82 Consolidated balance sheet 83 Consolidated statement of changes in equity 84 Consolidated cash flow statement 85

Notes Segment reporting 86 Accounting policies 87 Notes to consolidated financial statements 96

Audit report 129

- 81 - Financial report | Consolidated income statement I Consolidated statement of comprehensive income Financial report | Consolidated balance sheet

Consolidated income statement Consolidated balance sheet

(CHF 1,000) Notes 2009 2008 (CHF 1,000) Notes 31.12.2009 31.12.2008 Revenue from goods and services Assets Revenue from aviation operations (1) 505,092 525,689 Land (7) 109,547 109,547 Revenue from non-aviation operations (1) 315,115 329,414 Buildings, engineering structures (7) 2,295,490 2,391,016 Total revenue 820,207 855,103 Facilities in leasing (7) 56,457 62,337 Projects in progress (7) 195,511 93,403 Personnel expenses (2) –158,416 –152,394 Movables (7) 90,074 91,849 Police and security –113,458 –113,016 Total property, plant and equipment (7) 2,747,079 2,748,152 Maintenance and material –40,697 –43,907 Intangible asset from right of formal expropriation (7) 233,336 238,970 Sales, marketing, administration –38,175 –41,575 Other intangible assets (7) 6,359 9,520 Energy and waste –24,553 –25,015 Investments in associates (9) 15,571 7,952 Other operating expenses (3) –40,181 –36,057 Non-current financial assets of Airport of Zurich Noise Fund (8) 97,922 72,965 Other expenses/income, net (4) –2,493 –22,898 Other financial assets (10) 11 1,125 Earnings before interest, tax, depreciation and amortisation (EBITDA) 402,234 420,241 Non-current assets 3,100,278 3,078,684

Depreciation and amortisation (7) –189,078 –186,168 Inventories 8,867 8,811 Earnings before interest and tax (EBIT) 213,156 234,073 Current financial assets of Airport of Zurich Noise Fund (8) 80,334 65,823 Trade receivables (11) 114,687 108,651 Other receivables and prepaid expenses (12) 23,896 26,920 Financial expenses (5) –82,823 –93,277 Cash and cash equivalents (13) 231,693 74,038 Financial income (5) 5,011 14,064 Current assets 459,477 284,243 Share of profit or loss of associates (9) 8,376 –7,612 Gain on disposal of shares in associate (9) 95,278 0 Total assets 3,559,755 3,362,927

Equity and liabilities Profit before tax 238,998 147,248 Share capital (14) 307,019 307,019 Own shares (14) –1,612 –11,841 Capital reserves (14) 587,966 590,584 Income tax (6) –48,388 –25,934 Hedging reserve, net (14) –82,524 –78,590 Fair value reserve, net (14) 1,453 1,477 Translation reserve (14) 1,011 –4,842 Profit 190,610 121,314 Other retained earnings (14) 785,098 625,128 Equity 1,598,411 1,428,935

Basic earnings per share (in Swiss francs) (14) 31.20 19.78 Debentures and non-current loans (15) 995,058 992,459 Diluted earnings per share (in Swiss francs) (14) 31.18 19.77 Lease liabilities (15) 58,601 63,536 Non-current provisions for sound insulation and formal expropriations (16) 246,354 244,561 Deferred tax liabilities (18) 102,955 96,459 Retirement benefit plans (20) 3,708 3,443 Non-current liabilities 1,406,676 1,400,458 Consolidated statement of comprehensive income Trade payables 33,407 50,049 Current financial liabilities (15) 194,465 175,839 Other current debt, accruals and deferrals (21) 311,155 285,893 (CHF 1,000) Notes 2009 2008 Current tax liabilities 14,512 20,624 Profit 190,610 121,314 Deferred revenue (19) 1,129 1,129 Current liabilities 554,668 533,534 Other comprehensive income Change in tax rate (18) 0 –330 Total liabilities 1,961,344 1,933,992 Cross currency interest rate swaps, net of income tax – Adjustments to fair value (15) –11,860 –33,803 Total equity and liabilities 3,559,755 3,362,927 – Transfer to income statement (15) 7,926 7,648 Available-for-sale securities – Adjustments to fair value –423 2,950 – Losses realised 399 1,446 Reclassification to income statement of cumulative foreign exchange differences relating to disposal of shares in associate 2,982 0 Foreign exchange differences 2,871 –4,571 Other comprehensive income, net of income tax 1,895 –26,660

Total comprehensive income 192,505 94,654

- 83 - Financial report | Consolidated statement of changes in equity Financial report | Consolidated cash flow statement

Consolidated statement of changes in equity Consolidated cash flow statement

(CHF 1,000) Notes 2009 2008 Profit 190,610 121,314 Financial result, net (5) 77,812 79,213 Share of profit or loss of associates (9) –8,376 7,612 Gain on disposal of shares in associate (9) –95,278 0 Income tax (6) 48,388 25,934 Depreciation of property, plant and equipment (7) 179,202 178,021 Amortisation of intangible assets (7) 10,586 8,893 (CHF 1,000) capital Share Own shares reserves Capital net reserve, Hedging reserve value Fair reserve Translation earnings Other retained equity Total Dissolution of government subsidies and grants on buildings and engineering structures (7) –710 –746 Balance at 1.1.2008 307,019 –650 590,869 –52,105 –2,919 –271 531,441 1,373,384 Losses from disposals of property, plant and equipment (net) (4) 2,039 2,535 Share-based payments 1,041 1,154 Profit 121,314 121,314 Increase (-)/decrease (+) in inventories, trade receivables and other receivables and prepaid expenses –3,068 –8,676 1) Change in tax rate –330 –330 Increase (+)/decrease (-) in current debt, excluding current financial liabilities –25,154 12,654 Cross currency interest rate swaps, net of income tax Increase (+)/decrease (-) in provisions for retirement benefit plans (20) 265 525 2) – Adjustments to fair value –33,803 –33,803 Total expenses for sound insulation and formal expropriations (16) –6,033 –10,184 2) – Transfer to income statement 7,648 7,648 Income tax paid –20,391 –3,147 Available-for-sale-securities Cash flow from operations 350,933 415,102 – Adjustments to fair value 2,950 2,950 of which related to aircraft noise 26,063 35,342 – Losses realised 1,446 1,446 Cash flow from noise charges (17) 32,096 45,526 Foreign exchange differences –4,571 –4,571 Cash flow for sound insulation and formal expropriations (16) –6,033 –10,184 Investments in property, plant and equipment (projects in progress) –180,949 –249,893 Other comprehensive income, net of income tax 0 0 0 –26,485 4,396 –4,571 0 –26,660 Proceeds from disposals of property, plant and equipment (7) 208 4,040 Proceeds from disposal of shares in associate (9) 87,329 0 Total comprehensive income 0 0 0 –26,485 4,396 –4,571 121,314 94,654 Capital contributions paid to associates (9) –5,273 –2,783 Investments in intangible asset from right of formal expropriation 0 –11,981 Dividends paid relating to the 2007 financial year –27,627 –27,627 Investments in financial assets of Airport of Zurich Noise Fund –113,649 –139,713 Purchase of own shares –12,630 –12,630 Change in other financial assets 156 –838 Share-based payments 1,439 –285 1,154 Repayment of current financial assets of Airport of Zurich Noise Fund 73,630 133,376 Interest received 4,111 8,943 Balance at 31.12.2008 307,019 –11,841 590,584 –78,590 1,477 –4,842 625,128 1,428,935 Cash flow from investing activities –134,437 –258,849 of which related to aircraft noise –40,019 –6,337 Balance at 1.1.2009 307,019 –11,841 590,584 –78,590 1,477 –4,842 625,128 1,428,935 Investments in financial assets of Airport of Zurich Noise Fund –113,649 –139,713 Repayment of current financial assets of Airport of Zurich Noise Fund 73,630 133,376 Profit 190,610 190,610 Redemption of outstanding debenture (15) –128,000 0 Issue of new debenture (15) 222,576 0 Cross currency interest rate swaps, net of income tax Repayment of liabilities towards banks arising from US car park lease (15) –50,697 –49,008 2) – Adjustments to fair value –11,860 –11,860 Repayment of lease liabilities (15) –4,652 –4,418 2) – Transfer to income statement 7,926 7,926 Repayment to Zurich Airport Staff Pension Fund (12) –52 –19 Available-for-sale-securities Payment of dividend for the 2008/2007 financial years (14) –30,640 –27,627 – Adjustments to fair value –423 –423 Purchase of own shares –59 –12,630 – Losses realised 399 399 Sale of own shares 6,629 0 Reclassification to income statement of cumulative foreign Interest paid –75,400 –72,299 exchange differences relating to disposal of shares in associate 2,982 2,982 Capitalised borrowing costs (5) 1,526 1,430 Foreign exchange differences 2,871 2,871 Cash flow from financing activities –58,769 –164,571

Other comprehensive income, net of income tax 0 0 0 –3,934 –24 5,853 0 1,895 Effect of foreign exchange differences on cash and cash equivalents held –72 0

Total comprehensive income 0 0 0 –3,934 –24 5,853 190,610 192,505 Increase/decrease in cash and cash equivalents (13) 157,655 –8,318 Balance at beginning of financial year (13) 74,038 82,356 Dividends paid relating to the 2008 financial year –30,640 –30,640 Balance at end of financial year (13) 231,693 74,038 Purchase of own shares –59 –59 of which included in Airport of Zurich Noise Fund (13) 7,013 22,374 Sale of own shares 9,116 –2,487 6,629 of which cash at banks and in postal cheque accounts (13) 7,013 19,474 Share-based payments 1,172 –131 1,041

Balance at 31.12.2009 307,019 –1,612 587,966 –82,524 1,453 1,011 785,098 1,598,411

1) See “Notes to consolidated financial statements”, note 18, “Deferred tax liabilities”. 2) See “Notes to consolidated financial statements”, note 5, “Financial result” and note 15 “Financial liabilities”.

- 85 - Financial report | Notes | Segment reporting Financial report | Accounting policies

Segment reporting General remarks • IFRS 8 – Operating Segments The operating licence awarded by the federal government authorises IFRS 8 replaces IAS 14, “Segment Reporting”, and requires segment and obliges the airport operator, Flughafen Zürich AG, to operate reporting to be carried out in accordance with a management Aviation Aviation Aviation flight operations 1) security aircraft noise Non-aviation 1) Eliminations Consolidated Zurich Airport until 2051. In addition to combining transport services approach. The focus is on information and key data that are of by road, rail and air, Flughafen Zürich AG also operates Zurich Airport relevance to company management and management decisions. (CHF million) 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 2009 2008 as a shopping, entertainment and services centre. Please refer to The segments Aviation flight operations, Aviation security, Revenue from third parties 331.1 335.7 141.7 143.6 32.3 46.4 315.1 329.4 820.2 855.1 “Segment reporting” for more detailed information. Aviation aircraft noise and Non-aviation are reported under IFRS Inter-segment revenue 13.3 10.5 122.7 123.1 –136.0 –133.6 Total revenue 344.4 346.2 141.7 143.6 32.3 46.4 437.8 452.5 –136.0 –133.6 820.2 855.1 8, which corresponds to the internal decision-making and The consolidated financial statements are prepared in accordance reporting structures. In accordance with the internal reporting, with the International Financial Reporting Standards (IFRS) and associates are now allocated to the segment Non-aviation. Segment result 20.1 10.1 –6.1 –7.4 22.0 39.3 177.2 192.1 213.2 234.1 comply with Swiss law. They have been prepared under the historical cost convention, with the exception of derivative financial instruments, • IAS 1 (revised) – Presentation of Financial Statements Earnings before interest and tax (EBIT) 213.2 234.1 financial investments of the Airport of Zurich Noise Fund that are The revised standard calls for changed presentation of the financial Financial expenses –2.7 –3.0 –8.0 –19.2 –9.4 –10.8 –20.1 –33.0 classified as available for sale, and associates. statements. One of the main changes is the introduction of a Unallocated financial expenses –62.8 –60.3 Financial income 3.4 6.1 3.4 6.1 statement of comprehensive income showing the result of all changes Unallocated financial income 1.6 8.0 The individual audited financial statements of the group’s subsidiaries, in equity not related to transactions with owners in their capacity Share of profit or loss of associates 8.4 –7.6 8.4 –7.6 which have been prepared in accordance with uniform accounting as owners of the company. Gain on disposal of shares in associate 95.3 95.3 0.0 policies, have been used as the basis for consolidation. The reporting Unallocated income tax –48.4 –25.9 date for all subsidiaries is 31 December. • IAS 23 (revised) – Borrowing Costs Profit 190.6 121.3 The revised standard requires borrowing costs to be capitalised

Tangible and intangible assets 936.2 928.1 53.4 41.5 235.1 241.1 1,762.0 1,787.0 2,986.8 2,997.7 The preparation of financial statements in accordance with IFRS means if they are directly attributable to the acquisition, construction or Financial assets 97.9 73.0 97.9 73.0 that the Management Board has to make estimates and assumptions, production of a qualifying asset. As of 1 January 2009 it is therefore Investments in associates 15.6 8.0 15.6 8.0 as well as exercise its discretion, when applying the accounting policies. no longer possible to charge borrowing costs for qualifying assets Current financial assets and cash and cash This may affect reported income, expenses, assets, liabilities and directly to the income statement. Flughafen Zürich AG has in the equivalents 87.3 88.2 87.3 88.2 contingent liabilities at the time of preparation of the financial statements. past already capitalised borrowing costs for qualifying assets. Total segment assets 936.2 928.1 53.4 41.5 420.4 402.3 1,777.6 1,795.0 3,187.6 3,166.9 In the event that such estimates and assumptions made in good faith Unallocated current financial assets and cash and by the Management Board at the time of preparation of the financial The following additional interpretations and amended standards cash equivalents 224.7 51.7 statements should subsequently prove to deviate from the actual published by the International Accounting Standards Board (IASB) Unallocated other assets 147.5 144.4 Consolidated assets 3,559.8 3,362.9 circumstances, the estimates and assumptions originally made are became applicable for financial years beginning 1 January 2009: revised in the financial year in which the circumstances changed. IFRIC 13 “Customer Loyalty Programmes”, IFRIC 15 “Agreements for Total segment liabilities 63.5 68.1 246.4 244.6 123.5 166.7 433.4 479.3 the Construction of Real Estate”, IFRIC 16 “Hedges of Net Investment Unallocated liabilities 1,527.9 1,454.7 Judgements made by the Management Board in its application of IFRS in a Foreign Operation”, IFRIC 18 “Transfers of Assets from Customers”, Consolidated liabilities 1,961.3 1,934.0 that have a significant effect on the consolidated financial statements, Amendments to IFRS 1 “First-time Adoption of International Financial and estimates with a significant risk of adjustment in the following Reporting Standards and IAS 27 Consolidated and Separate Financial

Capital expenditure 57.0 98.8 12.6 9.1 74.7 285.8 124.0 144.8 268.3 538.5 financial year, are discussed in “Notes to the consolidated financial Statements”, Amendment to IFRS 2 “Share-based Payment: Vesting Depreciation and amortisation 54.4 52.2 5.8 5.1 5.6 2.8 123.2 126.0 189.1 186.2 statements”, “Significant estimates and assumptions in the application Conditions and Cancellations”, Amendments to IAS 32 “Financial of accounting policies” (see also note 7, “Changes in non-current Instruments: Presentation and IAS 1 Presentation of Financial Statements: assets”). Puttable Financial Instruments and Obligations Arising on Liquidation”, Number of employees (full-time positions) 571 533 17 15 12 11 702 695 1,302 1,254 Amendments to IFRIC 9 “Reassessment of Embedded Derivatives” Change in accounting policies and Improvements to IFRSs (May 2008). With the exception of the changes noted below, the accounting 1) Investments in associates and the resulting profit or loss are now recognised in the non-aviation segment. The prior-year figures have been re-presented accordingly. policies were the same as those applied in the prior year. The above stated amendments and interpretations have been applied Notes: When adding up rounded-up or rounded-down sums, it is possible that minor discrepancies may occur. for the first time in the 2009 financial year. These amendments • IFRS 7 – Financial Instruments: Disclosures and interpretations did not have a significant impact on the financial The amended standard requires additional details about the position, results of operations or cash flows of Flughafen Zürich AG. calculation of fair value of financial instruments and liquidity risk. The amendements require a quantitative analysis of the calculation of fair values based on a 3-level fair value hierarchy for each class of financial instrument that is measured at fair value.

- 87 - Financial report | Accounting policies

Introduction of new standards in 2010 and later consolidated financial statements of Flughafen Zürich AG has not Foreign currency Operating lease The following new and revised standards and interpretations have yet been systematically analysed. The expected effects as disclosed For consolidation purposes, all assets and liabilities reported in the Income and expenses associated with operating leases are recognised been issued, but are not yet effective and are not applied early below the table reflect only a tentative first assessment by the balance sheets of companies within the group are translated into in the income statement over the period of the lease. in these consolidated financial statements. Their impact on the Management Board. Swiss francs at the year-end exchange rate. Income statements and cash flow statements are translated at the average exchange rate Financial result for the period. Exchange differences that arise on translation are The financial result comprises interest payments on borrowings recognised directly in equity. calculated using the effective interest rate method (excluding borrowing Planned application by costs relating to buildings under construction), the unwinding of the Standard / Interpretation Effective date Flughafen Zürich AG Transactions in foreign currency are translated into Swiss francs at effect of discounting on provisions, interest income, dividend income, IFRS 3 (revised) – Business Combinations * 1 July 2009 2010 financial year IAS 27 (amended) - Consolidated and Separate Financial Statements * 1 July 2009 2010 financial year the exchange rate in effect on the day of the transaction. Foreign foreign currency gains and losses, gains on/losses from the disposal Amendments to IAS 39 – Financial Instruments: Recognition and Measurement – Eligible Hedged Items * 1 July 2009 2010 financial year currency monetary items are translated at the exchange rate at the of financial assets classified as available for sale, impairment losses on IFRIC 17 – Distribution of Non-cash Assets to Owners * 1 July 2009 2010 financial year balance sheet date. Exchange differences that arise from the settlement financial assets and gains on/losses from hedging instruments Improvements to IFRSs 2008 – Amendments to IFRS 5 – Non-current Assets Held for Sale and Discontinued or translation of foreign currency monetary items are recognised recognised in the income statement. Operations * 1 July 2009 2010 financial year in the income statement. 1 July 2009 Interest income is recognised in the income statement using the Improvements to IFRSs (April 2009) ** 1 January 2010 2010 financial year Reporting of revenue effective interest method. Dividend income is recognised in the IFRS 1 (revised) - First-time Adoption of International Financial Reporting Standards * 1 July 2009 2010 financial year Revenue is reported in accordance with IAS 18 when the service has financial statements at due date. Amendments to IFRS 2 – Group Cash-settled Share-based Payment Transcations * 1 January 2010 2010 financial year Amendments to IFRS 1 - First-time Adoption of International Financial Reporting Standards – Additional Exceptions * 1 January 2010 2010 financial year been rendered or delivery has taken place, it is probable that the Amendment to IAS 32 – Financial Instruments: Presentation - Classification of Rights Issues * 1 February 2010 2011 financial year economic benefits will flow to the company and it can be measured Borrowing costs arising during the construction stage for movables, IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments * 1 July 2010 2011 financial year reliably. In addition, the significant risks and rewards of ownership buildings and engineering structures are capitalised up until IAS 24 (revised 2009) – Related Party Disclosures ** 1 January 2011 2011 financial year have to be transferred to the recipient of the service or the buyer of completion of the asset in question. Amendments to IFRIC 14: IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their the product. Interaction - Prepayments of a Minimum Funding Requirement * 1 January 2011 2011 financial year Land IFRS 9 – Financial Instruments: Classification and Measurement *** 1 January 2013 2013 financial year Revenue in the aviation flight operations segment mainly concerns Land is stated at cost and is not depreciated. * No, or no significant, impact is expected on the consolidated financial statements of Flughafen Zürich AG. passenger and landing fees and income from the baggage sorting ** Mainly additional disclosures or changes in presentation are expected in the consolidated financial statements of Flughafen Zürich AG. *** The impacts on the consolidated financial statements of Flughafen Zürich AG can not yet be determined with sufficient reliability. and the aircraft energy supply system. Revenue in the aviation security The entire airport site of 8,150,100 square metres is divided into segment mainly concerns security charges, and in the aviation individual plots of land on the basis of an internal grid. Each plot is aircraft noise segment it primarily concerns noise-related charges. valued separately. In addition to various criteria specific to the Scope and methods of consolidation consolidation. All business combinations have been accounted for The main revenue components in the non-aviation segment are airport, e.g. potential utilisation density, the development of land The consolidated financial statements comprise Flughafen Zürich AG using the purchase method. This means that the assets, liabilities revenue from marketing and rental of commercial infrastructure at prices in the region was also taken into account for valuation and all companies in Switzerland and abroad that are directly or and contingent liabilities of each acquired subsidiary have been the airport, car park revenue, income from rental and commercial purposes in connection with the formation of Flughafen Zürich AG indirectly under its control. Here, the term “control” means the power recognised at fair value at the date of acquisition, and the difference licences, revenue from energy and incidental cost allocation and from as of 1 January 2000. Land that has already been developed or is to govern financial and operating policies of an entity in order to between purchase price and the group’s share of the fair values communication services. classified as developable and is comparable to industrial real estate obtain corresponding benefits. This is the case if the group holds more of the acquired net assets is recognised as goodwill. Goodwill is not constitutes the highest category, followed by areas required for than 50 percent of the voting rights of a company or if it controls amortised, but is tested for impairment annually. Subsidiaries that Leases actual flight operations (runways, taxiways, aprons, etc.). A third that company on a contractual or de facto basis. are acquired or disposed of during the year are consolidated or Finance leases category includes undeveloped agricultural land and the extended de-consolidated with effect from the date control commences or Lease agreements that substantially transfer all the risks and rewards nature conservation area. On the basis of the internal grid, land values These companies have been fully consolidated. All assets and liabilities control ceases respectively. of ownership to the company concerned are classified as finance range from 675 Swiss francs per square metre for intensive use, have been included in the consolidated financial statements together leases. Lease payments are allocated between an interest expense down to 2 Swiss francs per square metre for plots reserved for nature with all income and expenses in accordance with the principles and a reduction of the outstanding liability. Leased assets are conservation. of full consolidation. All unrealised gains and losses on intra-group depreciated over the estimated useful life or over the term of the transactions and all intra-group balances have been eliminated on lease, whichever is shorter. Interest on finance leases and depreciation The value of these plots of land is recorded in the balance sheet at of the leased assets are charged to the income statement. around 100 million Swiss francs. This valuation was applied once at the time of privatisation as the basis for the estimated acquisition costs.

- 89 - Financial report | Accounting policies

Property, plant and equipment Projects in progress Financial assets Derivative financial instruments Property, plant and equipment are stated at acquisition or construction Projects in progress are stated at acquisition or production cost and Financial assets include securities of the Airport of Zurich Noise Fund Derivative financial instruments are used exclusively for the purpose cost, less accumulated depreciation and accumulated impairment include investments in projects that have not yet been completed. classified as available-for-sale financial assets. Upon initial recognition, of hedging interest rate and currency risks, and are reported under losses. The production costs of buildings include direct costs for labour These mainly comprise assets under construction. Once a project has they are measured at fair value plus directly attributable transaction other receivables or other current debt. They are carried at fair value (third-party services and internal personnel), materials and overheads, been completed, the related asset is transferred to the relevant costs. The securities are subsequently also measured at fair value in accordance with IAS 39. Changes in the fair value of derivative plus the borrowing costs arising during the construction stage, which category of property, plant and equipment. Assets that are already in with any resultant gain or loss being recognised directly in equity instruments which fulfil the requirements for cash flow hedges are are capitalised up until completion of the asset in question. The use and are classified as “Projects in progress” are depreciated from (in the fair value reserve, net), except for impairment losses and, booked directly to the hedging reserve, net. As soon as the hedged property, plant and equipment contributed by the Canton of Zurich the time they are brought into use. From the date of completion of an in the case of monetary items such as debt securities, foreign transaction has occurred, the accumulated, non-realised gains and on 31 December 1999 contain no overheads and borrowing costs. asset, no further expenditure on the asset or related borrowing costs exchange gains and losses. When these securities are derecognised, losses are charged to the income statement. For all other derivative Since 1 January 2000, borrowing costs and overheads relating to all is capitalised. the cumulative gain or loss previously recognised directly in equity instruments, changes in fair value are recognised in the income assets under construction have been is transferred to the income statement. Where these investments statement. capitalised. Intangible assets and goodwill are interest-bearing, interest calculated using the effective interest Intangible assets are stated at cost less accumulated amortisation method is recognised in the income statement. Inventories Components of property, plant and equipment with a different useful and accumulated impairment losses. The intangible assets are Inventories mainly comprise fuel inventories and parts used for the life are reported individually and depreciated separately. Expansion amortised using the straight-line method. Financial assets also include loans that are stated at cost, less maintenance and repair of property, plant and equipment and are and replacement expenditure is capitalised if it is probable that impairment losses. stated at cost or, if lower, at net realisable value. The first-in, first-out Flughafen Zürich AG will gain benefits. Maintenance and renovation With the award of the operating licence, Flughafen Zürich AG was method is applied when calculating the cost. expenditure are charged to the income statement when incurred. also granted a right of formal expropriation of property owners exposed Investments in associates and joint ventures to aircraft noise. This right of formal expropriation was granted on Associates are companies where the group is able to exercise Receivables Assets that are acquired under finance leases are recognised at the condition that the airport operator bears the costs associated with signi­ficant influence, but not control, over the financial and operating Receivables are stated at their nominal value less an impairment present value of the future lease payments or, if lower, the fair value. compensation payments. This right is capitalised as an intangible policies (normally where the group is entitled to 20 to 50 percent allowance. The impairment allowance comprises individual A corresponding lease liability is recognised. asset. Capitalisation takes place at the time at which the probable of the voting rights). The consolidated financial statements include adjustments of specifically identified positions for which there is total costs can be estimated based on final-instance court rulings, so the group’s share of the recognised gains and losses of associates objective evidence that the outstanding amount will not be recovered The leased assets are depreciated over the estimated useful life or that the cost can be reliably estimated in accordance with IAS 38.21. on an equity accounted basis. in full, and collective adjustments of groups of receivables with a over the term of the lease, whichever is shorter. The timing of capitalisation may vary from region to region around similar risk profile. Collective impairment losses relate to losses that the airport. At the same time as an intangible asset is recognised at Investments in associates where the group is entitled to less than have been incurred but for which the precise amounts are not yet The useful life for each category of property, plant and equipment is the present value of the expected future payments, an equal amount 20 percent of the voting rights, but where it nonetheless is able known. They are based on historical data for payment statistics for as follows: is recognised as a provision. Any future re-estimates of the probable to exercise significant influence, are also included in the consolidated receivables. As soon as there is sufficient evidence that a receivable total costs will adjust both the intangible asset and the related financial statements by applying the equity method. will not be recoverable, it is directly written off or offset against the Buildings maximum 40 years provision. The intangible asset is amortised using the straight-line corresponding allowance. Engineering structures maximum 30 years method over the remaining duration of the operating licence (i.e. Interests in joint ventures are included in the consolidated financial Tunnels and bridges maximum 50 years until May 2051). statements by applying the equity method. A joint venture is based Cash and cash equivalents Equipment and vehicles 3 to 20 years on a conctractual agreement according to which two or more parties Cash and cash equivalents comprise cash on hand, in postal cheque Goodwill arising from acquisitions is not amortised but is tested for exercise a business activity under joint management, whereby non accounts and at banks (including collateral) with a maturity of 90 Government subsidies and grants impairment annually. of the involved parties are able to exercise control on their own. days or less from the date of acquisition. The reported government subsidies and grants concern those that were paid out prior to 1989. Grants and subsidies related to Costs directly associated with the development of computer software investments are recognised as income over the useful life of each are capitalised, provided it is probable that the software will be asset, and they are reported in the income statement as an successfully completed and is expected to result in future economic adjustment to the depreciation of the related asset. All government benefits. The useful life of software is three to five years. subsidies take the form of “à fonds perdu” grants and do not have to be repaid. Flughafen Zürich AG does not have any intangible assets with an indefinite useful life.

- 91 - Financial report | Accounting policies

Impairment Equity Retirement benefit plans Should the Canton of Zurich cease to be the main shareholder in The group assesses every year if there are any indications that its Share capital a) Main benefit plan of “Beamtenversicherungskasse of the Canton of Flughafen Zürich AG and the Zurich Cantonal Airport Act accordingly assets, other than inventories and deferred taxes (following special Shares are classified as equity since they are non-redeemable and Zurich” (BVK) be changed, Flughafen Zürich AG would be forced under the BVK accounting rules), are impaired. If there is any indication that an asset dividend payments are at the discretion of the company. statutes to seek an alternative pension fund solution. If an actuarial may be impaired, the recoverable amount of the asset is calculated Since 1 January 2000, the entire workforce of Flughafen Zürich AG has funding deficit should occur under these circumstances, Flughafen (impairment test). For goodwill, other intangible assets with indefinite Own shares been affiliated to the “Beamtenversicherungskasse des Kantons Zürich AG could be required to provide additional funds, which would useful life and intangible assets that are not yet available for use, Acquisition costs (purchase price and directly attributable transaction Zürich” (BVK) pension fund. Staff actively employed and pensioners be charged to the income statement at the time any such change in the recoverable amount is calculated annually, even if there are no costs) of own shares are deducted from equity. of the former Flughafen Direktion Zürich were already members pension fund provider were to become effective. indications that they may be impaired. of this pension fund, whilst those employees taken over by Flughafen Dividends Zürich AG from Flughafen-Immobilien-Gesellschaft transferred to b) Other benefit plans If the carrying amount of an asset or related cash generating unit Dividends are recognised as a liability as soon as they have been the BVK on 1 January 2000. The BVK is a pension fund comprising The following benefit schemes are also maintained by Flughafen exceeds its recoverable amount, an impairment loss is recognised in approved at the General Meeting of Shareholders. approximately 66,000 employees of the local and cantonal governments Zürich AG: the income statement. of Zurich, other public and semi-public corporations and institutions Financial liabilities and non-profit organisations domiciled in the canton of Zurich, and • Agreement with Zurich Insurance Company offering benefits to The recoverable amount of other assets (excluding financial instruments) Financial liabilities are initially recognised at cost less transaction costs. companies in which the government holds a major interest. The the pensioners from the former Flughafen Immobilien Gesellschaft is the higher of the fair value less costs to sell and value in use. The difference between the amount initially recognised and the liabilities of the BVK were funded at a level of 86.2 percent as of 31 (FIG; this group of beneficiaries did not transfer to the BVK). This To determine the value in use, the estimated future cash flows are redemption amount is amortised over the duration of the liability December 2009 (2008: 81.0 percent) as calculated according to the is a defined contribution plan which is fully funded. Zurich Insurance discounted. The discount rate is a pre-tax rate that reflectsthe using the effective interest method. applicable regulations (Article 44 BVV2). Company is responsible for providing future benefits. risks associated with the corresponding asset. If an asset does not generate cash inflows that are largely independent of those from Provisions Up to the end of 2002, the BVK retirement benefit plan was regarded • Special plan agreed with the BVK for providing compensation for other assets, the recoverable amount is determined for the cash Provisions are recognised when the entity has a present obligation as as a defined benefit plan. Owing to a lack of data from the BVK, early retirement. This is a defined benefit plan. In this plan, the generating unit to which the asset belongs. The recoverable amount a result of a past event that occurred prior to the balance sheet date, Flughafen Zürich AG treated it as a defined contribution plan in present value of the expected claims (defined benefit obligation) of receivables and loans is equivalent to the present value of the if an outflow of resources is probable and the amount of the outflow accordance with IAS 19.30 and it was not reported by the projected is calculated by the projected unit credit method and set aside estimated future cash flows. Impairment losses on receivables and can be estimated reliably. If the effect is significant, provisions are unit credit method in the balance sheet. In 2003, the contract between as a reserve. Pension costs related to work performed during the loans are reversed if the amount of the impairment loss decreases reported in the balance sheet at their present value. Flughafen Zürich AG and the BVK was modified so that Flughafen reporting period (current service cost) are charged to the income and the decrease can be related to an event that occurred in a period Zürich AG will not be required to pay any additional contributions statement. Pension costs associated with work performed in the after the impairment was recognised. Provisions for the constructive obligation for sound insulation to cover any shortfall in funding. A breach of this provision would past, which are due to new or improved benefits (past service measures are recognised on the basis of the Environmental Protection give Flughafen Zürich AG the right to terminate the contract without cost) are reported on a straight-line basis as part of pension costs Impairment losses on goodwill are not reversed. Act as soon as they can be estimated reliably. having to provide financial compensation for any actuarial funding until the benefits become vested. Actuarial and investment losses deficit. The Board of Directors of Flughafen Zürich AG has declared and gains resulting from periodic recalculations are shown in Impairment losses on other assets are reversed if indications exist Provisions for formal expropriations are recognised for compensation that under no circumstances will it pay extra contributions to cover the financial statements on a straight-line basis over the average that the impairment loss has decreased or no longer exists, and if payments as soon as these have been reliably estimated on the basis funding deficits in the benefit plan, although it is prepared to do remaining service period, insofar as they do not exceed 10 percent estimates that were used for calculating the recoverable amount of final-instance court rulings (see “Intangible assets and goodwill”). whatever possible to uphold the contract with BVK. The contractual of the defined benefit obligation. have changed. modifications noted above and the declarations by the Board of Directors mean that no actuarial or investment risk associated with Share-based payments The increased carrying amount cannot exceed the carrying amount the benefit plan at present can be transferred to Flughafen Zürich Flughafen Zürich AG issues shares to its employees as part of its that would have been determined had no impairment loss been AG as employer. Given this situation and the fact that the BVK is a bonus and staff participation programme. The fair value of the shares recognised in prior years. dependent entity under public cantonal law whose continuation is is recognised as an expense with a corresponding increase in equity. secured, the retirement benefit plan is treated as a defined contribution The fair value is measured at grant date and spread over the vesting plan in accordance with IAS 19.25. This means that the pension period. obligation is limited to the contributions paid by Flughafen Zürich AG to the BVK, which are recognised as an expense in the income statement as incurred.

- 93 - Financial report | Accounting policies

Income taxes Immediately before non-current assets are classified as held for sale, Aviation security Principles of segment reporting Income taxes comprise current and deferred taxes. They are recognised the carrying amounts have to be determined in accordance with This segment covers the installation, operation and maintenance of Assets and liabilities are allocated to the respective operating segments in the income statement, with the exception of taxes on transactions the applicable IFRS standards. After reclassification, the assets are security infrastructure and all processes of direct relevance to security. on the basis of internal reporting. Wherever possible, financial recognised directly in equity. In these cases, taxes are also recognised recognised at the lower of carrying amount and fair value less costs This includes all systems and their operation and maintenance instruments (including cash and cash equivalents and interest-bearing in equity. to sell. Assets that were previously depreciated are no longer designed to prevent actions of any kind that affect the security of debt) are allocated directly to the segments. Most of the clients and depreciated. commercial civil aviation, in particular facilities for the control of suppliers of Flughafen Zürich AG maintain business relationships Current taxes comprise the expected taxes to be paid on the taxable passengers, personnel, hand luggage, checked-in baggage and freight. with all the segments. Debt allocated to the individual segments is result, using tax rates enacted or substantively enacted at balance Segment reporting Furthermore, it reports on the costs associated with all other duties limited to liabilities associated with noise-related costs belonging sheet date. Reporting of operating segments is carried out in accordance with performed by the airport police, including surveillance operations, to the aircraft noise segment, and to financial liabilities that can be IFRS 8 in line with the internal reporting to the company’s chief protection of airlines and persons at special risk, operation of a directly allocated to individual segments. Most of the inter-segment Deferred taxes are recognised on temporary differences between tax operating decision maker. The Board of Directors has been identified control centre, training of personnel and other tasks relating to security. revenue comprises offset rental costs from Non-aviation for premises values and book values using the balance sheet liability method. as chief operating decision maker of Flughafen Zürich AG responsible The security charges collected from passengers are the source of required for activities in Aviation. Non-current assets (including The following temporary differences are not provided for: the initial for major decisions concerning the allocation of resources and the revenue for covering the costs incurred in this segment. terminals) have primarily been allocated to the Non-aviation segment. recognition of goodwill, the initial recognition of assets and liabilities assessment of performance of the operating segments. The offsetting of costs for the use of premises is based on actual cost that affect neither accounting nor taxable profit, and differences Aviation aircraft noise (including interest paid on invested capital). Inter-segment revenue relating to investments in subsidiaries to the extent that they will Flughafen Zürich AG has the following four operating segments: All income and expenses associated with aircraft noise are reported simultaneously represents inter-segment expenses in the segment probably not reverse in the foreseeable future. Measurement of separately in this segment. Furthermore, a liquidity-based statement results of the units using the facilities. Full-time employees are deferred taxes takes into account the expected time and manner of Aviation flight operations of noise-related data is presented in the notes to the consolidated allocated to the segments on the basis of their activity. realisation or settlement of the assets and liabilities concerned This segment encompasses the construction, operation and maintenance financial statements, since the Airport of Zurich Noise Fund was using tax rates that are enacted or substantively enacted at balance of the airport operating infrastructure. It incorporates all the core derecognised retrospectively as of 1 January 2004. This statement The identified operating segments have not been aggregated. sheet date. services provided to airlines and passengers by Flughafen Zürich AG presents the accumulated surplus or shortfall as of balance sheet in its capacity as operator of Zurich Airport. These services include date arising from noise charges collected on a “user pays” basis, less Flughafen Zürich AG provides practically all its services within Deferred tax assets are only recognised if it is probable that the the runway system, all apron zones (including control activities), expenses for formal expropriations, sound insulation measures and Switzer­land. During 2009, it provided external consulting services deductible temporary differences can be offset against future taxable passenger zones in the terminals, freight operations, baggage sorting related operating costs (see “Notes to consolidated financial statements”, worth 2.5 million Swiss francs (2008: 4.4 million). profits. and handling system and aircraft energy supply system, passenger note 17, “Airport of Zurich Noise Fund”). handling and services, and safety. The main sources of revenue from Flughafen Zürich AG’s revenue with Lufthansa Group in 2009 Non-current assets held for sale flight operations are passenger and landing fees. Revenue from third Non-aviation amounts to approximately 295.9 million Swiss francs and is reported Non-current assets and groups of assets, including liabilities directly parties is determined by passenger volumes, flight volumes and the Non-aviation encompasses all activities relating to the development, in the segments Aviation flight operations, Aviation security, Aviation associated with those assets (disposal groups) are classified as trend with respect to aircraft take-off weights. marketing and operation of the commercial infrastructure at Zurich aircraft noise and Non-aviation. “held for sale” and recognised separately in the balance sheet under Airport. This segment includes all retail operations at the airport, current assets or liabilities if their carrying amount will not be revenue from rented premises and supplementary costs (energy recovered from continuing use, but rather through a sale transaction. supply, etc.), parking fees plus a broad range of commercial services The assets must be available for immediate sale in their present provided by Flughafen Zürich AG. For reporting purposes, each condition and the sale must be highly probable. For a sale to be highly profit centre has been allocated to a segment. Any internal supplies probable, various criteria have to be met, including that the sale must and services that have been provided to other segments have been be expected to take place within a year. booked as inter-segment earnings or offset against costs. For example, the Information and Communication Technology (ICT) profit centre is allocated to Non-aviation segment, and proportionate costs are charged to Aviation on a “user pays” basis. Support functions are also allocated to the Non-aviation segment, and then offset accordingly.

- 95 - Financial report | Notes

Notes to consolidated financial statements 4. Hub carrier Since as of the middle of 2008, despite the estimate of 759.8 million On 26 May 2009 the Federal Administrative Court corrected a The national airline, Swiss, is the main client of Flughafen Zürich AG. Swiss francs stated above, the total estimated noise-related costs decision by the Federal Assessments Commission of 17 December Significant estimates and assumptions in the application of Like any other hub airport, Zurich greatly depends on the operational exceeded the threshold of 1.1 billion Swiss francs in the worst case 2007 that had set the date for the foreseeability of an eastern accounting policies and financial development of its hub carrier. (“negative case”), the prefinancing by the Canton of Zurich for “old” approach as 1 January 1961. The Federal Administrative Court noise-related liabilities entered into effect on 30 June 2008 in changed this date to 23 May 2000. After a detailed examination, Value of property, plant and equipment and intangible assets; 5. Reporting of noise-related costs in the financial statements accordance with the supplementary agreement. This was subject to Flughafen Zürich AG decided to appeal this decision to the Federal reliability of estimate of capitalised noise-related costs The reporting of noise-related costs in the financial statements is a the condition that the still pending fundamental issues were decided Supreme Court. Flughafen Zürich AG owns property, plant and equipment and intangible complex matter that involves significant assumptions and estimates against Flughafen Zürich AG. In return for bearing the risk and for assets with a total carrying amount of 3.0 billion Swiss francs. If concerning the capitalisation of such costs and the obligation to financing the “old” noise-related liabilities, the Canton of Zurich Based on the rulings pronounced to date by the Federal Supreme Court there is any indication that an asset may be impaired, the recoverable recognise provisions. This complexity is attributable to a large variety received a portion of the Airport of Zurich Noise Fund as of 30 June concerning fundamental issues, Flughafen Zürich AG is abiding by amount of the asset is calculated (impairment test). Impairment of relevant legal bases, unclear or pending legal practice, and political 2008 (115.4 million Swiss francs). This amount was recognised in its original estimate of 30 June 2008 concerning total noise-related tests are carried out as a matter of course at least once per year. debate. the consolidated financial statements as an intangible asset arising costs in the amount of 759.8 million Swiss francs. This estimate The basis is the estimated future cash flows of Flughafen Zürich AG, from the right of formal expropriation and represents a portion of was based on a variety of assumptions, such as pending legal issues and a variety of assumptions have to be made in order to estimate Flughafen Zürich AG has received a total of around 19,000 noise- the costs for “old” noise-related liabilities, which since 1 July 2008 without a last-instance ruling. The date of the foreseeability of the them. Cash flows can be negatively influenced by the following risk related claims for compensation. Approximately 2,600 cases are have been covered by the Canton of Zurich, but until 30 June 2008 eastern approach was another of these assumptions. As of the factors (see also note 7, “Changes in non-current assets”): currently being examined by the Swiss Federal Assessments were financed by Flughafen Zürich AG through revenuefrom collected balance sheet date, Flughafen Zürich AG had recognised costs for Commission. In the meantime rulings have been received from the noise charges. As a result of the assumption of “old” noise-related formal expropriations amounting to 233.3 million Swiss francs and 1. Legal issues Swiss Federal Supreme Court on the 18 selected pilot cases in the liabilities by the Canton of Zurich, Flughafen Zürich AG is no longer had recognised provisions for formal expropriations of 130.8 million Various internal and external political restrictions could mean that municipality of Opfikon. required to recognise a provision for these “old” noise-related Swiss francs and provisions for pending sound insulation costs of 115.6 Flughafen Zürich AG will not be able to fully utilise its infrastructure, liabilities. million Swiss francs. and would need to finance additional investments and costs. These With respect to formal expropriations, the rulings on fundamental include: issues by the Supreme Court in the first half of 2008 enabled Flughafen Based on the above estimates of noise-related costs and the initiation If, on the basis of future legal practice, total noise-related costs in the Zürich AG to estimate the total costs for the first time, in spite of of prefinancing by the Canton of Zurich, in the consolidatedfinancial worst case (“negative case”) should ultimately be below the applicable • Cantonal initiatives calling for modification of Zurich cantonal the remaining uncertainty factors influencing the accuracy of this statements as of 30 June 2008, the amount of 125.5 million Swiss threshold, the Canton of Zurich would no longer be required under airport legislation estimate. francs (present value) was recognised as a provision for compensation the supplementary agreement of 8 March 2006 to assume the • Zürcher Fluglärm-Index ZFI (Zurich Aircraft Noise Index) of formal expropriations (nominal amount, 150.1 million Swiss francs). prefinancing of the “old” noise-related liabilities. In this case, Flug- • SIL process (Civil Aviation Infrastructure Plan) Based on the fundamental issues on which the Supreme Court has This amount concerns the “new” noise-related liabilities of Flughafen hafen Zürich AG would assume the still unpaid “old” noise-related • Rulings by the supervisory authorities relating to landing and ruled to date, the reliably estimated noise-related costs (“base case”) Zürich AG. The present value of the future payments was at the liabilities and in return would receive back the Canton of Zurich’s take-off procedures as of 30 June 2008 amount to a total of 759.8 million Swiss francs same time recognised as an intangible asset from the right of formal corresponding share of the assets from the Airport of Zurich Noise • Unilateral ordinance issued by Germany (including formal expropriations, costs for sound insulation measures expropriation. Fund (“reversal”). As of that date the splitting of noise charges would • Legal proceedings and all related operating costs). This means that the total estimated also no longer apply. At that point in time Flughafen Zürich AG • Revision of the Swiss Federal Civil Aviation Act costs associated with formal expropriations were below the previously From 1 July 2008, the developments cited above have the following would make a current estimate of the total outstanding noise-related disclosed potential costs (in the form of a risk assessment) of between effects on the consolidated financial statements: liabilities and make adjustments to the noise-related costs on both 2. Falling demand 800 million and 1.2 billion Swiss francs. the asset and liability sides of the balance sheet. Experience over the past few years has shown that civil aviation is a • Revenue from noise charges, reduced by a portion allocated to the highly volatile business that reacts sensitively to external occurrences On 8 March 2006, Flughafen Zürich AG and the Canton of Zurich Canton of Zurich (47 percent), will be recognised in the income Depending on future and final-instance legal judgements, especially (acts of terrorism, outbreaks of disease or epidemics, economic signed a supplementary agreement to the merger agreement dated statement. with respect to the area to the south, the “new” noise-related crises). This means that such events can lead to a fall in demand at 14 December 1999. The purpose of the supplementary agreement • Compensation payments for formal expropriations concerning liabilities in future may also be subject to substantial adjustments, Zurich Airport. was to limit the risks for the company associated with formal “new” noise-related liabilities will be charged against the which would also require corrections in the noise-related costs expropriations. Under this supplementary agreement, the Canton recognised provision. recognised as assets and liabilities in the balance sheet. In this case, 3. Additional security regulations of Zurich would assume the prefinancing of all “old” noise-related • The intangible asset from the right of formal expropriations will prefinancing by the Canton of Zurich and the split of noise charges Additional security regulations imposed by the authorities can also liabilities in the event that, upon payment of the first formal be amortised using the straight-line method over the remaining would presumably continue to apply. At the present time, it is not give rise to increasing security costs and reduced revenue from expropriations, the risk should arise that the total estimated costs duration of the operating licence (i.e. until May 2051). possible to reliably estimate the total costs to capitalise as intangible commercial activities in the future. Given the delay between the time associated with aircraft noise (formal expropriations, costs for • The unwinding of the discount on provisions for formal assets from the right of formal expropriation, the amortisation period at which such costs arise and the earliest possible refinancing via sound insulation and all related operating costs) could exceed 1.1 expropriations will be recognised in the same way as the unwinding or the corresponding provision. security charges, a negative impact on the result cannot be ruled out. billion Swiss francs (“threshold”) given a worst case scenario of the discount on provisions for sound insulation measures. (“negative case”). • As before, noise-related operating costs will be borne in full by Flughafen Zürich AG and charged to the Airport of Zurich Noise “Old” noise-related liabilities are liabilities that arose prior to June 2001, Fund. up to which date the Canton of Zurich was holder of the operating • As before, payments for sound insulation measures will be licence, therefore making it liable for such claims in an external charged against the already recognised provision. capacity. The threshold is subject to an annual adjustment based on the development of the equity of Flughafen Zürich AG. The threshold as of 31 December 2009 was higher than the original level of 1.1 billion Swiss francs, but has no effect on the prefinancing provided by the Canton of Zurich.

- 97 - Financial report | Notes

Consolidated income statement Fee to finance assistance for passengers with reduced mobility The fee is intended to cover all investment and operating costs As of 1 November 2009, Flughafen Zürich AG is responsible for associated with this new service. It was carefully calculated and is 1) Revenue from goods and services handling passengers with reduced mobility. This responsibility is not linked to any other services at Zurich Airport. The calculations based on EU regulation EC–1107/2006, which entered into effect for were made for a time frame of five years. This results in a shortfall Switzerland on 1 November 2009 in accordance with existing bilateral for 2009 and 2010 which according to the forecast will be balanced (CHF 1,000) 2009 2008 agreements. With the implementation of the above regulation in out in the period from 2011 to 2014. The shortfall in the year under Passenger fees 173,044 176,807 Switzerland, a variety of binding standards relating to quality, training review is lower than the amount calculated in the consultation report Landing fees 77,453 79,630 and information in connection with the handling of passengers with on the PRM fee. This is due to the costs for training internal Baggage sorting and handling system 26,150 26,383 reduced mobility were introduced at Zurich Airport. personnel, which will only be incurred in the 2010 financial year. In Other earnings 16,224 15,270 addition, delays occurred in the processing of structural investments Aircraft energy supply system 10,483 11,300 Freight revenue 6,999 7,755 For the refinancing of this service, on the above date Flughafen Zürich for implementing the ordinance, and this is why no depreciation, Fuel charges 6,352 6,549 AG introduced a new operational fee for the assistance of passengers amortisation and imputed interest are included in the 2009 Parking fees 5,790 5,088 with reduced mobility in accordance with the provisions of Articles statement. These costs will impact the PRM result 2010. CUTE charges (check-in system for handling agents) 4,113 4,138 32 ff of the Federal Ordinance on Civil Aviation Infrastructure. The Emission fees 2,916 3,042 new fee of 1 Swiss franc is collected from all passengers at Zurich In the event that the income and expenses relating to this new service PRM fees 1,707 0 Airport who depart on commercial flights. It is collected by invoicing should not develop as budgeted, the fee will be adjusted in accordance Bad debt write-offs –100 –271 the airlines concerned. with the provisions of Articles 32 ff of the above Federal Ordinance Revenue from aviation flight operations 331,131 335,691 Security fees 140,298 142,127 based on the costs and in line with the principles of non-discrimination Refund of security costs 1,395 1,435 and transparency. Revenue from aviation security 141,693 143,562 Noise charges 32,268 46,436 Revenue from aviation aircraft noise 32,268 46,436 The table below shows the income and expenses relating to the assistance of passengers with reduced mobility in the year under review Total revenue from aviation 505,092 525,689 (only for two months): Retail outlets and duty-free shops 71,562 79,493 Revenue from multi-storey car parks 61,959 64,407 Advertising media and promotion 13,112 12,886 Food and beverage operations 11,215 11,405 (CHF 1,000) 2009 2008 Other licence revenue (car rentals, taxis, banks, etc.) 12,222 12,859 PRM fees 1,707 0 Commercial revenue 170,070 181,050 Total revenue 1,707 0 Revenue from rental and leasing agreements 85,589 82,144 Energy and incidental cost allocation 26,066 25,487 Fixed service costs (service provider) –548 0 Cleaning 3,591 3,511 Variable service costs (service provider) –998 0 Other services revenue 2,118 5,497 Other operating expenses –207 0 Trade fairs and events 0 314 Earnings before interest, tax, depreciation and amortisation (EBITDA) –46 0 Revenue from facility management 117,364 116,953 Communication services 13,250 12,988 Depreciation and amortisation 1) 0 0 Other services and miscellaneous 7,338 9,163 Earnings before interest and tax (EBIT) –46 0 Conference Center 152 3,050 Capitalised expenditure 1) 7,085 6,275 Imputed interest and income tax 1) 9 0 Bad debt write-offs –144 –65 Revenue from services 27,681 31,411 Loss –37 0 Total revenue from non-aviation 315,115 329,414 Total revenue 820,207 855,103 1) In the year under review, the PRM result does not include depreciation, amortisation and imputed interest. Investments for implementation will be capitalised first in 2010. Depreciation, amortisation and imputed interest will therefore only be reported in the PRM result for the first time in 2010. 1) Capitalised expenditure primarily relates to the fees of in-house architects and engineers, as well as project managers who act as builder/owner representatives. Their services are allocated to each project/property.

- 99 - Financial report | Notes

2) Personnel expenses 3) Other operating expenses

(CHF 1,000) 2009 2008 (CHF 1,000) 2009 2008 Wages and salaries 125,001 118,129 Protection and rescue services (SRZ) 21,000 21,100 Pension costs Insurance 4,266 5,479 - for defined benefit plans 1) 109 117 Rental and land leases 6,640 3,006 - for defined contribution plans 11,066 10,266 PRM costs 1,546 0 Social security contributions 13,315 13,295 Cleaning by external contractors, incl. snow clearing 2,282 2,229 Other personnel expenses 8,925 10,587 Additional operating costs 1,772 2,167 Total personnel expenses 158,416 152,394 Communication costs 1,670 1,771 Average number of employees (full-time positions) 1,292 1,213 Passenger services 1,005 305 Number of employees as of 31 December (full-time positions) 1,302 1,254 Total other operating expenses 40,181 36,057 Average personnel expense per position 122 122

1) See note 20, “Retirement benefit plans”. 4) Other expenses/income, net

Staff participation programme objectives. The criterion for defining the consolidated result is the (CHF 1,000) 2009 2008 Flughafen Zürich AG gives one share for free to those employees degree of achievement of targeted airport value added, or the difference Other income 325 1,450 who have completed their first year of service. between the budgeted and achieved airport value added (AVA). The Other expenses –2,818 –24,348 assessment of the degree of achievement of personal objectives is Total other expenses/income, net –2,493 –22,898 Bonus programme for members of the Management Board and based on the annual Management by Objectives process. In both middle management personnel cases, the decision for a given year is taken or confirmed in the following The total of all annual remuneration to members of the Management financial year by the Nomination & Compensation Committee. Board and middle management personnel comprises a fixed salary Two-thirds of the performance component is paid out in cash and Other income includes: Other expenses include: and a variable performance component (bonus), which is based on one-third in shares (see also note 22.5, “Related parties”). 2009: 0.1 million Swiss francs bankruptcy dividend Swissair 2009: 2.0 million Swiss francs from losses on disposals of the consolidated result and the degree of achievement of personal (second instalment). non-current assets. 2008: 0.8 million Swiss francs bankruptcy dividend Swissair 2008: 21.3 million Swiss francs repayment to Swissair liquida- (first instalment). tor, and 2.5 million Swiss francs from losses on disposals 2008 2008 of non-current assets. 2009 2008 Number Average value Recipient CHF 1,000 CHF 1,000 of shares per share Personnel 55 54 207 266.75 Members of the Management Board 428 325 1,315 258.25 Middle management personnel 660 659 2,077 258.25 Adjustment of share price in subsequent year to market price 1) –108 58 Total 1,035 1,096 3,599

1) The value of the shares comprising the bonus for the 2008 financial year was 0.11 million Swiss francs lower in May 2009 (grant date) than the amount accrued for the bonus for the 2008 financial year as of year-end.

The bonus for the 2009 financial year was estimated on the basis Bonus programme for the Board of Directors of the available data as of balance sheet date relating to the degree No bonus programme exists for members of the Board of Directors. of achievement of the consolidated result and personal objectives. Their remuneration comprises an annual lump sum plus payments The number of shares to be granted cannot be precisely calculated for attending meetings (see note 22.5, “Related parties”). yet since the number depends on the share price at grant date. If the shares had been granted as of year-end, a total of 3,496 shares Option programme would have been distributed. No option programme exists at Flughafen Zürich AG.

- 101 - Financial report | Notes

5) Financial result Consolidated balance sheet

7) Changes in non-current assets (CHF 1,000) 2009 2008 Interest expenses on debentures and non-current loans 63,943 61,250 Less capitalised interest on borrowings for buildings under construction –1,526 –1,430 Net interest expenses on debentures and non-current loans 62,417 59,820 Interest expenses on finance lease payments 2,700 2,998 Unwinding of financial liabilities 3,325 2,559 Other interest expenses 33 0 Interest difference related to interest rate swap 1,088 5,253 Total interest expenses 69,564 70,630 Loss on financial assets of Airport of Zurich Noise Fund 1) 128 14,070 Other financial expenses 4,763 3,346 Foreign exchange losses 542 101 Unwinding of discount on non-current provisions for sound insulation and formal expropriations 7,826 5,130

Financial expenses 82,823 93,277 (CHF million) Land Engineering structures Buildings in leasing Facilities in progress Projects Movables and equipment plant property, Total of formal right from asset Intangible expropriation assets Other intangible in associates Investments of financial assets Non-current Fund Airport of Zurich Noise Other financial assets Total Interest income on financial assets of Airport of Zurich Noise Fund –3,383 –6,073 Cost Interest income on postal cheque accounts and bank deposits/loans –301 –2,624 Balance as of 1.1.2008 112.2 1,286.8 3,600.4 91.6 103.5 213.3 5,407.9 0.2 76.6 17.4 126.1 0.3 5,628.3 Interest on arrears –5 –11 Additions 248.6 248.6 241.5 2.8 44.5 1.1 538.5 Total interest income –3,689 –8,708 Disposals –3.7 –44.2 –58.8 –10.2 –116.9 –8.5 –50.4 –0.3 –176.1 Gain from trading in derivatives (adjustments to fair value of interest rate swap) –1,084 –5,004 Reclassification 0.0 –51.5 –51.5 Foreign exchange gains –201 –319 Transfers 1.0 106.2 123.5 –258.7 25.0 –2.9 2.9 0.0 Financial income –37 –33 Adjustments to fair value 0.0 4.3 4.3 Financial income –5,011 –14,064 Foreign exchange differences 0.0 –4.6 –4.6 Total financial result 77,812 79,213 Balance as of 31.12.2008 109.5 1,348.8 3,665.2 91.6 93.5 227.9 5,536.5 241.8 71.0 15.6 73.0 1.1 5,938.9

Balance as of 1.1.2009 109.5 1,348.8 3,665.2 91.6 93.5 227.9 5,536.5 241.8 71.0 15.6 73.0 1.1 5,938.9 1) Including write-off in 2008 of Sigma Finance Corp. (11.4 million Swiss francs). Change in scope of consolidation 0.0 –2.1 –1.1 –3.2 Additions 181.4 181.4 12.3 74.6 268.3 Disposals –0.2 –120.7 –0.1 –6.5 –127.4 –1.4 –13.2 –142.0 Reclassification 0.0 –49.1 –49.1 Capitalised interest on borrowings for buildings under construction The interest rate swap held by the group to the value of 300 million Transfers 23.3 36.0 –79.2 18.1 –1.8 1.8 0.0 was calculated using an average interest rate of 5.36 percent in Swiss francs expired on 16 March 2009. Adjustments to fair value 0.0 –0.6 –0.6 2009 (5.60 percent in 2008). Foreign exchange differences 0.0 3.4 3.4 Balance as of 31.12.2009 109.5 1,371.9 3,580.5 91.6 195.6 239.5 5,588.6 241.8 71.4 16.0 97.9 0.0 6,015.7

6) Income tax Depreciation, amortisation and impairment losses Balance sheet as of 1.1.2008 0.0 594.0 1,968.7 23.5 0.1 129.5 2,715.8 0.0 63.9 0.0 0.0 0.0 2,779.6 (CHF 1,000) 2009 2008 Additions 37.7 116.7 5.8 17.8 178.0 2.8 6.1 7.6 194.5 Current period 40,878 18,975 Transfers 1.9 –1.9 0.0 0.0 Adjustments for prior periods 0 –1,560 Disposals –42.3 –58.7 –9.3 –110.2 –8.5 –118.7 Total current income tax 40,878 17,415 Balance as of 31.12.2008 0.0 589.4 2,028.6 29.2 0.1 136.1 2,783.5 2.8 61.5 7.6 0.0 0.0 2,855.4 Change in tax rate, booked to income statement 0 –2,576 Deferred tax on changes in temporary differences 7,510 11,095 Balance sheet as of 1.1.2009 0.0 589.4 2,028.6 29.2 0.1 136.1 2,783.5 2.8 61.5 7.6 0.0 0.0 2,855.4 Total deferred income tax 7,510 8,519 Additions 39.9 114.2 5.9 19.2 179.2 5.6 5.0 –4.8 185.0 Total income tax 48,388 25,934 Transfers 0.0 0.0 Disposals –0.2 –119.2 –5.9 –125.3 –1.4 –2.4 –129.1 Balance as of 31.12.2009 0.0 629.1 2,023.6 35.1 0.1 149.4 2,837.4 8.4 65.1 0.4 0.0 0.0 2,911.3 Income tax can be analysed as follows:

Government subsidies and grants Balance as of 31.12.2007 0.0 0.1 5.4 0.0 0.0 0.0 5.6 0.0 0.0 0.0 0.0 0.0 5.6 (CHF 1,000) 2009 2008 Disposals –0.1 –0.7 –0.7 –0.7 Profit before tax 238,998 147,248 Balance as of 31.12.2008 0.0 0.1 4.8 0.0 0.0 0.0 4.9 0.0 0.0 0.0 0.0 0.0 4.9 Disposals –0.0 –0.7 –0.7 –0.7 Tax expense at anticipated tax rate of 20.5% 48,995 30,186 Balance as of 31.12.2009 0.0 0.1 4.1 0.0 0.0 0.0 4.2 0.0 0.0 0.0 0.0 0.0 4.2 Non-taxable income –435 0 Adjustment of deferred tax due to change in tax rate 0 –2,576 Elimination of tax accruals from previous years 0 –1,560 Net carrying amount Current year losses for which no deferred tax assets were recognised 0 137 as of 31.12.2007 112.2 692.6 1,626.3 68.1 103.5 83.7 2,686.4 0.2 12.7 17.4 126.1 0.3 2,843.0 Miscellaneous transitory items –172 –253 Net carrying amount Total income tax 48,388 25,934 as of 31.12.2008 109.5 759.2 1,631.8 62.3 93.4 91.8 2,748.1 239.0 9.5 8.0 73.0 1.1 3,078.7 Net carrying amount as of 31.12.2009 109.5 742.7 1,552.8 56.5 195.5 90.1 2,747.1 233.4 6.3 15.6 97.9 0.0 3,100.3

Note: when adding up rounded-up or rounded-down sums, it is possible that minor discrepancies may occur.

- 103 - Financial report | Notes

Lease transaction with a US trust concerning multi-storey car Intangible asset from right of formal expropriation Impairment • Growth of flight movements will be disproportionately slower than parks 1, 2, 3 and 6 With the award of the operating licence, Flughafen Zürich AG was Flughafen Zürich AG carries out a calculation at company level on a passenger growth In 2003, Flughafen Zürich AG concluded a lease transaction with a also granted a right of formal expropriation of property owners exposed yearly basis to determine whether any indication is present that • Investments in infrastructure will secure the present-day quality US trust. In the first stage of this deal, the utilisation rights to multi-storey to aircraft noise. This right of formal expropriation was granted on assets may be impaired. The calculation is based on the estimated standard and ensure compliance with the existing EU compatibility car parks 1, 2, 3 and 6 were sold to a US trust and simultaneously condition that the airport operator bears the costs associated with future cash flows of Flughafen Zürich AG.The calculation did not requirements. leased back. Flughafen Zürich AG is to retain ownership of the multi- compensation payments. This right is capitalised as an intangible identify any impairment indications as of 31 December 2009. storey car parks with a net carrying amount as of 31 December asset. Capitalisation takes place at the time at which the probable Depreciation and amortisation 2009 of 156.5 million Swiss francs (31 December 2008: 167.7 million) total costs can be estimated based on final-instance court rulings, so The calculation is based on the following assumptions: Depreciation and amortisation of property, plant and equipment during the entire period of the lease agreement. Repayment of the that the cost can be reliably estimated in accordance with IAS 38.21. • Discount rate of 7.5 percent and intangible assets totalling 189.8 million Swiss francs were offset additional capital is to be effected in almost identical annual tranches • Zurich will maintain its hub status against dissolutions of government grants and subsidies amounting in the period from 2005 to 2012. After the full amount has been At the same time as an intangible asset from the right of formal • The volume of local passengers will increase twice as fast as the to minus 0.7 million Swiss francs. repaid, the utilisation rights will be returned to Flughafen Zürich AG. expropriation was recognised in the amount of 125.5 million Swiss estimated GDP growth in Switzerland over the medium and long The option of increasing the sale price by extending the period of francs (present value of the expected future payments), an equal term utilisation rights was not used. The US trust has been consolidated in amount was recognised as a provision (see note 16, “Non-current accordance with SIC–12. provisions for sound insulation and formal expropriations”). In addition, the portion of the Airport of Zurich Noise Fund amounting 8) Financial assets of Airport of Zurich Noise Fund Lease of baggage sorting and handling system and aircraft energy to 115.4 million Swiss francs, which in accordance with the supply system supplementary agreement dated 8 March 2006 was transferred to In December 2001, Flughafen Zürich AG concluded a framework the Canton of Zurich (see note 17, “Airport of Zurich Noise Fund”), (CHF 1,000) 31.12.2009 31.12.2008 lease agreement for financing the new baggage sorting and handling was also capitalised as an intangible asset from the right of formal Current available-for-sale securities (see note 17, “Financial assets of Airport of Zurich Noise Fund”) 80,334 65,823 system and the aircraft energy supply system over a term of 17 years. expropriation. This amount represents a portion of the costs for “old” Non-current available-for-sale securities (see note 17, “Financial assets of Airport of Zurich Noise Fund”) 97,922 72,965 On 1 August 2003, since the systems were near completion, a noise-related liabilities, which are processed by the Canton of Zurich Total financial assets of Airport of Zurich Noise Fund 178,256 138,788 firsttranche of the definitive lease agreements totalling 84.5 million with effect from 1 July 2008, but which until 30 June 2008 were Swiss francs was put into effect. These lease agreements have a already financed by Flughafen Zürich AG through collected revenue maturity of 17 years. The second to eighth tranches took effect on 31 from noise charges. January 2004 (1.8 million Swiss francs), 31 July 2004 (0.5 million The available-for-sale securities are debentures. The investment These funds are managed by professional investment institutions Swiss francs), 31 January 2005 (0.4 million Swiss francs), 31 July 2005 The intangible asset from right of expropriation is amortised using horizon is based on the expected obligation to make payments from on the basis of a conservative, money-market-oriented investment (0.4 million Swiss francs), 31 January 2006 (1.2 million Swiss the straight-line method over the remaining duration of the operating the Airport of Zurich Noise Fund, and averages two to four years. strategy (see note 5, “Financial result” and note 22.1, a) “Financial francs), 31 July 2006 (0.6 million Swiss francs) and 31 January 2007 licence (i.e. until May 2051). In 2009, the applicable interest rate varied between 0.375 and 4.375 risk management, i) Credit risk”). (2.3 million Swiss francs). Additional tranches will be taken on if percent, and in 2008 between 1.26 and 4.375 percent. See note 12, necessary. In terms of form and content, both the framework and “Other receivables and prepaid expenses”, and note 17, “Airport of the definitive lease agreements are regarded as financial leases and Zurich Noise Fund”. they have therefore been capitalised. The leased facilities available for use have been depreciated with effect from their date of completion.

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9) Investments in associates Venezuela Flughafen Zürich AG finds this ruling unacceptable, and will therefore In 2006 the governor of Nueva Esparta expropriated the airport on be referring the case to the International Center for Settlement of Isla de Margarita for a second time. The airport was subsequently Investment Dispute (ICSID) in Washington D.C. if no amicable (CHF 1,000) 31.12.2009 31.12.2008 operated by a “junta interventora” under the management of the agreement is reached within the next few months. This procedure is Bangalore International Airport Ltd., Bengaluru (India) Venezuelan supreme court until spring 2009. based on the investment protection agreement between Venezuela Share capital: INR 3,846 million (previous year INR 3,846 million) / Equity share 5.0% (previous year 17.0%) 3,273 5,850 and Switzerland. Unique Chile S.A., Santiago de Chile (Chile) On 4 March 2009 the court announced the dissolution of the “junta 1) Share capital: CLP 4,325 million (previous year CLP 253 million) / Equity share 100.0% (previous year 48.0%) 0 2,102 interventora” and ordered the operation of the airport to be handed The value of the holding was fully impaired in 2006. A-port S.A., Sâo Paulo (Brasilia) Share capital: BRL 117 million (previous year BRL 52 million) / Equity share 15.0% (previous year 15.0%) 11,219 0 over to the Venezuelan central government. A-port Operaciones S.A., Santiago de Chile (Chile) For further information, see note 22.6, “Composition of the group”. Share capital: CLP 1,328 million (previous year CLP 254 million) / Equity share 32.6% (previous year 32.6%) 1,079 0 Administradora Unique IDC C.A., Porlamar (Venezuela) Share capital VEB 25 million (previous year VEB 25 million) / Equity share 49.5% (previous year 49.5%) 0 0 Key financial data relating to associates (100 percent): Aeropuertos Asociados de Venezuela C.A., Porlamar (Venezuela) Share capital VEB 10 million (previous year VEB 10 million) / Equity share 49.5% (previous year 49.5%) 0 0 Total investments in associates 15,571 7,952 (CHF 1,000) 31.12.2009 31.12.2008 Assets 627,784 516,914 1) Unique Chile S.A. was fully consolidated in the 2009 financial year. Liabilities –487,500 –462,217 Total revenue 146,817 56,563 Result 18,966 –34,350 India Based in São Paulo (Brazil), A-port S.A. invests in the construction Up until 29 December 2009, Flughafen Zürich AG held a 17 percent and operation of airport projects and airport-related infrastructure stake in the share capital of Bangalore International Airport Ltd. in Latin America and the Caribbean. Flughafen Zürich AG holds a 10) Other financial assets (BIAL), the owner and operator of the greenfield airport that was 15 percent stake in A-port S.A.. The existing interests in the Chilean opened in Bengaluru, India, in May 2008. Following the sale of 12 airports of Puerto Montt, La Serena and Calama were incorporated percent of its holding in BIAL at the end of 2009 (proceeds of into the joint venture the previous year. In addition, the 80 percent (CHF 1,000) 31.12.2008 31.12.2008 disposal before tax: 95.3 million Swiss francs), Flughafen Zürich AG stake held by Camargo Corrêa in Concessionária do estacionamento Loan to Unique Chile S.A. 1) 0 1,114 still held a 5% stake in the Indian airport operator as of the balance de Congonhas S.A., a car park at Congonhas Airport in São Paulo, Loan to FZ Colombia S.A. 11 11 sheet date. Flughafen Zürich AG also retains responsibility for the was also incorporated into the joint venture. The acquisition of a 51 Total other financial assets 11 1,125 operation of the airport on the basis of an operating, management percent stake in Hato International Airport in Curaçao at the end and service level agreement. Revenue is flowing to Flughafen Zürich of January 2009 was the first successful joint acquisition. 1) Unique Chile S.A. was fully consolidated in the 2009 financial year. AG from this agreement. Since Flughafen Zürich AG is able to exercise significant influence over BIAL due to its involvement in A-port Operaciones S.A., which is based in Santiago (Chile), is to executive and supervisory bodies, participation in decision-making assume responsibility for the performance of management and processes, exchange of management personnel and provision of consulting agreements concerning airports and airport-related 11) Trade receivables important know-how, the investment is accounted for using the infrastructure in Latin America and the Caribbean. Flughafen Zürich equity method. AG holds a 32.6 percent stake in A-port Operaciones S.A.. All existing management agreements in place in Latin America, with the exception (CHF 1,000) 31.12.2009 31.12.2008 In accordance with the agreement with the buyer of the 12 percent of those in Venezuela, were incorporated into the joint venture the Trade receivables 1) 115,947 109,762 interest in BIAL, Flughafen Zürich AG has an option to sell the previous year. These include the management agreements for the Impairment allowance –1,260 –1,111 remaining 5 percent stake in BIAL in the period from 24 May 2011 to three airports in Chile (Puerto Montt, La Serena and Calama), and Total trade receivables, net 114,687 108,651 30 September 2014. As of the balance sheet date, the fair value of (indirectly) the valid agreements in Colombia and Honduras via the this put option is close to zero. In return, the buyer was granted the respective local companies (Unique IDC Colombia S.A. and Unique 1) Trade receivables include an amount of 46.0 million Swiss francs due from Swiss International Air Lines Ltd. (2008: CHF 43.3 million Swiss francs) (see “Significant estimates and right to buy the remaining 5 percent at the market price. IDC S.A. de C.V.). assumptions in the application of accounting policies”, point 4 “Hub carrier” and note 22.1, a) Financial risk management, i) Credit risk”). In the period between balance sheet date and the preparation of the 2009 annual report, Swiss had paid the outstanding amount in full as of 31 December 2009. Latin America In 2008 and 2009, the holdings in Latin America (excluding those in Venezuela) were restructured due to the co-operation with Camargo Geographical distribution of trade receivables: Corrĕa (Brazil) and Gestion e Ingenieria S.A. (IDC), Chile in the “A-port” joint venture. Unique Chile S.A. is fully consolidated following (CHF 1,000) 31.12.2009 31.12.2008 the completion of the restructuring in the 2009 financial year. Switzerland 109,848 103,304 This has little effect on the consolidated financial statements. All Europe 5,696 6,347 investments of Flughafen Zürich AG in Latin America (except those India 292 0 in Venezuela) are held via Unique Chile S.A.. The following two South America 111 111 Total trade receivables 115,947 109,762 principal entities were formed in order to fully separate financial involvements from management of operations:

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Classification of receivables (not individually impaired) by due date as of balance sheet date: 13) Cash and cash equivalents

(CHF 1,000) 31.12.2009 of which AZNF 31.12.2008 of which AZNF Gross Collective allowance Gross Collective allowance Cash on hand 211 145 (CHF 1,000) 31.12.2009 31.12.2009 31.12.2008 31.12.2008 Cash at banks and in postal cheque accounts 81,523 7,013 32,578 19,474 Not past due 108,43893.52% –513 105,013 95.67% –828 Call deposits due within 30 days 115,000 2,900 2,900 Past due, 0 to 30 days 4,5713.94% –22 2,064 1.88% –16 Fixed deposits due within 30 days 25,012 35,000 Past due, 31 to 60 days 4880.42% –2 400 0.36% –3 Collateral, due within 90 days 1) 9,947 3,415 Past due, more than 61 days 2,4502.11% –12 2,285 2.08% –18 Total cash and cash equivalents 231,693 7,013 74,038 22,374 Total 115,947 –549 109,762 –865

1) For information on collateral, see note 15, “Financial liabilities”. During the year under review, the change in the impairment allowance was as follows:

The table below shows the applicable original currency, interest rates and average maturities in days: Individual allowance Collective allowance Total allowance (CHF in 1,000) 2009 2008 2009 2008 2009 2008 Status as of 1 January –246 –230 –865 –567 –1,111 –797 2009 2008 Change –465 –16 316 –298 –149 –314 Original 2009 2008 Average Average Status as of 31 December –711 –246 –549 –865 –1,260 –1,111 currency Interest rates (%) Interest rates (%) maturity (days) maturity (days) Cash at banks and in postal cheque accounts Swiss francs 0.125 0.125 to 0.25 n/a n/a In almost all cases, receivables not past due concern long-standing client relationships. Based on previous experience, Flughafen Zürich AG Call deposits Swiss francs 0.15 to 0.2 0.25 to 2.0 11 6 does not anticipate the need for any additional impairment allowance. Fixed deposits Swiss francs 0.16 to 0.46 0.5 to 2.85 65 22 Collateral Swiss francs 0.06 to 0.61 0.25 to 3.50 91 61

12) Other receivables and prepaid expenses 14) Equity

(CHF 1,000) 31.12.2009 31.12.2008 Services not yet invoiced 14,895 12,254 Issued registered shares Total shares in Accrued interest on debt instruments, Airport of Zurich Noise Fund 2,267 1,861 Number of shares (nominal value, CHF 50) Own shares circulation Prepaid services 559 437 Balance as of 1.1.2009 6,140,375 36,459 6,103,916 Accrued interest on other debt instruments 0 209 Purchase of own shares 235 –235 Prepaid expenses and accruals 17,721 14,761 Sale of own shares –28,106 28,106 Tax receivables (VAT/withholding tax) 4,948 11,497 Distribution of own shares to employees and third parties –3,613 3,613 Other receivables 1,081 463 Balance as of 31.12.2009 6,140,375 4,975 6,135,400 Current account with Zurich Airport Staff Pension Fund 0 42 Advance payments to suppliers 146 157 Total other receivables and prepaid expenses 23,896 26,920 Share rights Translation reserve The holders of registered shares are entitled to participate at the The translation reserve comprises foreign currency differences General Meeting of Shareholders and cast one vote per share. arising from the translation of the financial statements of foreign operations. Other receivables and prepaid expenses include the following financial instruments: Own shares Own shares are distributed to employees and third parties within the Dividend distribution limit scope of the bonus programme (see note 2, “Personnel expenses” The amount available for payment as dividend is based on the available (CHF 1,000) 31.12.2009 31.12.2008 and note 22.5, “Related parties”). Own shares are used for the bonus earnings of Flughafen Zürich AG and is specified in accordance with Services not yet invoiced 14,895 12,254 programme and are held as treasury stock. the provisions of the Swiss Code of Obligations (OR). Accrued interest on debt instruments, Airport of Zurich Noise Fund 2,267 1,861 Accrued interest on other debt instruments 0 209 Reserves Dividends Current account with Zurich Airport Staff Pension Fund 0 42 In accordance with the provisions of commercial law, the reserves The Board of Directors is proposing the payment of an ordinary Total financial instruments 17,162 14,366 Tax receivables (VAT/withholding tax) 4,948 11,497 are subject to a distribution limit of 155.1 million Swiss francs (2008: dividend of 5.00 Swiss francs, plus a special dividend of 2.50 Swiss Prepaid services 559 437 165.4 million). francs (from the partial disposal of the interest in Bangalore Other receivables 1,081 463 International Airport Ltd.) per share for the 2009 financial year. This Advance payments to suppliers 146 157 Hedging reserve results in a total dividend payment of 46.1 million Swiss francs. Total other receivables and prepaid expenses 23,896 26,920 The hedging reserve comprises the effective portion of the cumulative fair value change of cash flow hedging instruments in connection In accordance with the resolution of the General Meeting of with transactions that have been secured but have not yet occurred. Shareholders on 30 April 2009, Flughafen Zürich AG paid out a The interest from the liquid funds of Airport of Zurich Noise Fund oriented investment strategy (see note 5, “Financial result” and note dividend of 30.6 million Swiss francs for the 2008 financial year, that were invested separately in financial assets and cash equivalents 22.1, “a) Financial risk management”, i) Credit risk”). All services Fair value reserve or 5.00 Swiss francs per share. (see also Note 8, “Financial assets of Airport of Zurich Noise Fund“ provided during the year under review were invoiced between the The fair value reserve comprises the cumulative fair value change of and Note 17, “Airport of Zurich Noise Fund”) was accrued for the balance sheet date and the completion of the annual report. There available-for-sale financial assets up to the time of the derecognition. period under review. These funds are managed by professional are no past due receivables reported in the above positions that would investment institutions on the basis of a conservative, money-market- require the recognition of an individual or collective allowance.

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Earnings per share Composition of non-current financial liabilities as of balance sheet date: Basic and diluted earnings per share are calculated from the results and share data as of 31 December, which are composed as follows:

Nominal value Carrying amount Interest as of 31.12.2009 as of 31.12.2009 Early payment 2009 2008 Financial liabilities in 1,000 in 1,000 Duration Interest rate repayment date Profit attributable to shareholders of Flughafen Zürich AG in Swiss francs 190,610,193 121,313,791 Debenture CHF 225,000 222,958 2009–2014 4.500% no 18.2. Weighted average number of outstanding shares 6,108,714 6,132,397 Japanese private placement JPY 37,000,000 409,131 2003–2024 5.730% no 23.5./23.11. Effect of dilutive shares 4,968 4,881 US private placement USD 275,000 279,282 2003–2015 4.7525% from 2011 11.4./11.10. Adjusted weighted average number of outstanding shares 6,113,682 6,137,278 US car park lease USD 84,024 83,687 2003–2012 3.606% since 2005 20.12. Basic earnings per share (in Swiss francs) 31.20 19.78 1st of Diluted earnings per share (in Swiss francs) 31.18 19.77 Lease liabilities CHF 58,601 58,601 2003–2020 4.100% no each month Total non-current financial liabilities 1,053,659

Major shareholders and shareholder structure The shareholder structure as of 31 December was as follows: External loans are subject to standard guarantees and covenants, and these were complied with as of the balance sheet date.

2009 2008 Furthermore, as of balance sheet date an unused credit facility exists in the amount of 990.3 million Swiss francs (see note 22.1, a) “Financial Public sector 38.60% 38.60% risk management, ii) “Liquidity risks” and note 22.5, “Related parties”). Private individuals 2.15% 2.30% Companies 1.88% 2.38% The maturities of financial liabilities are shown in the table below: Pension funds 2.64% 2.54% Financial institutions (including nominees) 33.14% 31.35% Balance available and non-registered shareholders 21.59% 22.83% (CHF 1,000) 31.12.2009 31.12.2008 Due within 1 year 194,465 175,838 2009 2008 Due within 2 to 5 years 551,605 469,112 Number of shareholders 3,911 3,718 Due in more than 5 years 502,054 586,883 Total financial liabilities 1,248,124 1,231,833

As of the balance sheet date, the following shareholders or groups of shareholders held more than five percent of the voting rights: Hedge transactions (with hedge accounting) The following derivative instruments (cross currency interest rate swaps) are held by Flughafen Zürich AG to hedge the currency risks 2009 2008 associated with interest payments and repayments relating to non-current financial liabilities held in foreign currencies: Canton of Zurich (including BVK pension fund) 33.36% 33.36% City of Zurich (including pension fund of the City of Zurich) 5.04% 5.03% Japanese private US private US car park Description placement placement lease Duration 2003–2024 2003–2015 2003–2012 Total fair Deferred Total fair 15) Financial liabilities Contract amount (CHF 1,000) JPY 37,000 million USD 275 million USD 271 million value (gross) tax value (net) Fair values (CHF 1,000) 31.12.2009 31.12.2008 as of 31 December 2007 109,999 56,580 38,790 205,369 –43,127 162,242 Japanese private placement 409,131 428,883 Reduction in tax rate 1) 0 0 0 0 1,027 1,027 US private placement 279,282 287,242 Adjustment to fair value –20,847 14,284 1,507 –5,056 1,036 –4,020 Debenture 222,958 149,448 as of 31 December 2008 89,152 70,864 40,297 200,313 –41,064 159,249 Non-current liabilities towards banks arising from US car park lease 83,687 126,885 Adjustment to fair value 10,181 21,246 –3,771 27,656 –5,670 21,986 Lease liabilities 58,601 63,536 as of 31 December 2009 99,333 92,110 36,526 227,969 –46,734 181,235 Non-current financial liabilities 1,053,659 1,055,994 Debenture (redemption 26.3.2009) 0 127,945 1) See note 18, “Deferred tax liabilities”. Debenture (redemption 14.6.2010) 149,825 0 Current liabilities towards banks arising from US car park lease 39,785 39,767 Current lease liabilities 4,855 4,572 In the year under review, the accumulated losses on hedging instruments swaps are recognised in the income statement. The interest component Current financial liabilities 0 3,555 increased from 159.2 million Swiss francs (after deduction of deferred of the swaps is classified as a cash flow hedge. Changes in the fair Current financial liabilities 194,465 175,839 taxes) to 181.2 million. The fair value of the derivative instruments is value of hedging instruments are accordingly recognised in equity Total financial liabilities 1,248,124 1,231,833 recognised under other current debt, accruals and deferrals (see also (see also “Consolidated statement of changes in equity”). As soon note 21, “Other current debt, accruals and deferrals”). as hedged interest payments are effected, the changes in fair value On 21 December 2009, payment of the fifth instalment of liabilities On 26 March 2009, a debenture with a nominal value of 128.0 million are transferred to the income statement. The amounts of future cash towards banks arising from the US car park lease (50.7 million Swiss francs was repaid according to schedule. The debenture issued For hedge accounting purposes, the cross currency interest rate flows for swaps are presented in the maturities table in note22.1, a) Swiss francs) out of a total of eight tranches was effected using on 18 February 2009 with a nominal value of 225.0 million Swiss swaps are divided into two components: one component for hedging “Financial risk management, ii) Liquidity risk”. The hedges were fully available funds and in accordance with the agreement. francs with an interest coupon of 4.5 percent and repayment in 2014 currency risks, and the other for hedging interest risks. The hedging effective during the period under review. is reported under non-current financial liabilities. of the nominal amounts of foreign currencies is treated as a fair value In 2009, a total of 4.7 million Swiss francs (2008: 4.4 million) of hedge. Both the foreign exchange difference in the financial liabilities the outstanding leasing liabilities was repaid in accordance with the and change in fair value of the foreign currency component of the existing lease agreements.

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The accumulated foreign exchange differences in the hedged financial liabilities changed as follows in 2009. They correspond to the Overview of lease liabilities proportion of the fair value adjustment of the swaps that was recognised in the income statement: Lease liabilities include the lease concerning the baggage sorting and handling system and also the aircraft energy supply systems (see note 7, “Changes in non-current assets”).

Total foreign Total foreign Lease liabilities: Japanese currency currency private US private US car park differences differences (CHF 1,000) placement placement lease (gross) Deferred tax (net) as of 31 December 2007 –45,805 –56,293 –37,316 –139,414 29,277 –110,137 (CHF 1,000) 31.12.2009 31.12.2008 Reduction in tax rate 1) 0 0 0 0 –697 –697 Future minimum lease payments Foreign exchange differences 59,430 –17,875 –3,600 37,955 –7,781 30,174 Due within 1 year 7,341 7,477 as of 31 December 2008 13,625 –74,168 –40,916 –101,459 20,799 –80,660 Due within 2 to 5 years 29,363 29,910 Foreign exchange differences –19,999 –8,567 5,860 –22,706 4,655 –18,051 Due in more than 5 years 41,444 49,227 as of 31 December 2009 –6,374 –82,735 –35,056 –124,165 25,454 –98,711 Total future minimum lease payments 78,148 86,614

1) See note 18, “Deferred tax liabilities” Future interest payments 14,692 18,506

Present value of lease liabilities 63,456 68,108 of which due within 1 year 4,855 4,572 The non-realised gains/losses that are recognised in the hedging reserve, net as an item in equity, changed as follows in the year under of which due within 2 to 5 years 21,534 20,438 of which due within more than 5 years 37,067 43,098 review:

(CHF 1,000) Gross Deferred tax Net The applicable interest rate for lease liabilities was fixed in January 2009 and has been 4.1 percent since 1 February 2009. In 2008 the applicable as of 31 December 2007 –65,955 13,850 –52,105 interest rate for lease liabilities was between 4.15 and 4.45 percent. Change in tax rate 1) 0 –330 –330 Adjustments to fair value –42,519 8,716 –33,803 Transfer to income statement 9,620 –1,972 7,648 as of 31 December 2008 –98,854 20,264 –78,590 16) Non-current provisions for sound insulation and formal expropriations Adjustments to fair value –14,918 3,058 –11,860 Transfer to income statement 9,970 –2,044 7,926 as of 31 December 2009 –103,802 21,278 –82,524 Formal (CHF 1,000) Sound insulation expropriations Total 1) See note 18, “Deferred tax liabilities”. Provisions as of 31 December 2007 123,226 240 123,466 Provision used 1) –9,303 –881 –10,184 Provision reversed 0 0 0 Provision made 0 126,149 126,149 Collateral for the above hedge transactions Unwinding of discount 4,871 259 5,130 In the event that the cross currency interest rate swaps relating to the US private placement and the Japanese private placement should Provisions as of 31 December 2008 118,794 125,767 244,561 1) reach a negative fair value that exceeds a given minimum level, Flughafen Zürich AG is required to provide collateral in the form of cash and Provision used –6,033 0 –6,033 Provision reversed 0 0 0 cash equivalents, securities or letters of credit. As of balance sheet date the following collateral existed: Provision made 0 0 0 Unwinding of discount 2,795 5,031 7,826 Provisions as of 31 December 2009 115,556 130,798 246,354 2009 2008 (CHF 1,000) Original currency Interest rate in % Interest rate in % 31.12.2009 31.12.2008 1) The amount paid for formal expropriations only includes effective payments of compensation, and excludes other associated external costs in accordance with the regulations of the Cash and cash equivalents, due within 90 days Swiss francs 0.06 to 0.61 0.25 to 3.50 9,947 3,415 Airport of Zurich Noise Fund (see note 17, “Airport Zurich Noise Fund”). Letter of credit, due within 90 days 1) Swiss francs 0.75 to 1.25 0.75 168,000 146,000

1) Here the payable commission is shown instead of the interest rate. Provisions for sound insulation costs of accounting policies”, point 5, pages 96 and 97), as of the balance Flughafen Zürich AG has effectively committed itself to bearing sheet date a total of 130.8 million Swiss francs was recognised as a Hedge transactions (without hedge accounting) approximately 240.0 million Swiss francs in costs for sound insulation provision for “new” noise-related liabilities (nominal amount, 150.1 The company does not have any such hedge transactions as of the balance sheet date. measures, some of which have already been carried out and others million Swiss francs). This amount takes account of the last-instance which have been announced. As of the balance sheet date, a total court rulings made to date in the various regions around the airport. of 107.7 million Swiss francs had been paid. The remaining amount is Here, too, the discount rate is 4 percent. This provision is based on stated at the present value in the breakdown of provisions shown the recognition of an intangible asset from right of formal expropriation. above. The discount rate is 4 percent. With the assumption of the “old” noise-related liabilities by the Provisions for formal expropriations Canton of Zurich in accordance with the prefinancing solution, the Based on the fundamental issues on which the Supreme Court has company is no longer required to recognise a provision for these ruled to date, and taking account of the prefinancing by the Canton of “old” noise related liabilities. Zurich (see “Significant estimates and assumptions in the application

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17) Airport of Zurich Noise Fund line in the amount of 200 million Swiss francs. This credit facility is The table below presents an overview of the maturities and credit ratings of the invested funds of the Airport of Zurich Noise Fund: intended solely for the purpose of covering any such financing gap. Flughafen Zürich AG refinances all the costs relating to aircraft noise and is available until 2015. The costs relating to the provision of this through special noise charges based on the principle of “user pays”. credit line are charged to the fund statement and shown under (CHF 1,000) 2010 2011 2012 2013 Total in % In the interest of transparency, costs and income generated in operating costs. Any future costs arising in association with the Cash and cash equivalents 7,013 0 0 0 7,013 3.78 connection with aircraft noise are recognised in a special statement bridging of a financing gap will be charged to the fund statement. AAA 47,052 21,391 14,744 5,290 88,477 47.71 for the Airport of Zurich Noise Fund. The Airport of Zurich Noise AA+/AA/AA- 25,877 17,336 19,665 0 62,878 33.91 Fund is a liquidity-based fund. The statement for the fund presents Due to the fact that the amount of 115.4 million Swiss francs was A+/A/A- 7,405 9,413 5,065 5,018 26,901 14.51 Other 1) 180 0 0 0 180 0.10 the accumulated surplus or shortfall as of balance sheet date arising transferred to the Canton of Zurich on 1 July 2008 within the scope Total assets invested for Airport of Zurich Noise Fund 87,527 48,140 39,474 10,308 185,449 100.00 from noise charges, less expenses for formal expropriations, sound of the agreed prefinancing solution (see “Significant estimates and in % 47.20 25.96 21.29 5.56 100.00 insulation measures and noise-related operating costs. Its presentation assumptions in the application of accounting policies”, point 5, pages is independent of the accounting policies. The key figures from the 96 and 97) and that the Canton also receives a portion of the fund statement are shown in the table below. collected revenue from noise charges as of this date, the balance of 1) For accounting reasons, an accrual towards Flughafen Zürich AG arises as of balance sheet date. This is compensated in the month following, so the balance of liquid funds is the Airport of Zurich Noise Fund as of 31 December 2009 concerns restored. In the event that the fund statement should show an accumulated the “new” noise-related liabilities of Flughafen Zürich AG. income surplus, the liquid funds of the Airport of Zurich Noise Fund will be invested separately in financial assets and cash equivalents. The detailed fund statement is disclosed to a committee comprising 18) Deferred tax liabilities These funds are managed by professional investment institutions representatives of Zurich Airport and the relevant authorities. The on the basis of a conservative, money-market-oriented investment regulations of the Airport of Zurich Noise Fund plus other information In accordance with IAS 12.47, deferred tax assets and liabilities are to be calculated at the rate that may be expected to apply at the time they strategy, and income resulting from the investments is credited to (including an overview of investments) may be downloaded from are realised. Flughafen Zürich AG anticipates an applicable tax rate of 20.5 percent (2008: 20.5 percent). The expected tax rate is calculated the fund statement. the following web site: www.unique.ch/aznf (from 15 April 2010, on the basis of the applicable rate (rounded up or down) at the domicile of Flughafen Zürich AG (Kloten, canton of Zurich). www.zurich-airport.com/aznf). In the event that, over a certain timeframe, the accumulated costs should be higher than the accumulated income (i.e. a financing gap The balance of deferred tax liabilities evolved as follows: should arise), Flughafen Zürich AG has access to a committed credit

(CHF 1,000) 2009 2008 Opening balance (deferred tax liability, net) as of 1 January 96,459 94,354 Change in tax rate, booked to hedging reserve 0 330 The situation of the fund for Flughafen Zürich AG is as follows: Change in tax rate, booked to income statement 0 –2,576 Deferred taxes on adjustments to fair value of cross currency interest rate swaps booked in hedging reserve –3,058 –8,716 (CHF 1,000) 2009 2008 Cross currency interest rate swaps - transfer to income statement 2,044 1,972 Airport of Zurich Noise Fund as of 1 January 161,595 248,564 Change according to income statement 7,510 11,095 Split as of 1 July 2008 1) 0 –115,400 Deferred tax liability, net as of 31 December 102,955 96,459 Revenue from noise charges 2) 32,096 45,526 Costs for sound insulation and other measures –6,033 –9,303 Costs for formal expropriations 3) –767 –1,514 Net result before operating costs and financial result 186,891 167,873 Deferred tax is allocated to the following balance sheet items:

31.12.2009 31.12.2008 Noise-related operating costs –4,667 –4,331 (CHF 1,000) Assets Liabilities Assets Liabilities Interest income from assets of Airport of Zurich Noise Fund 3,377 7,727 Buildings and movables 54,727 52,166 Adjustments to fair value of available-for-sale securities –24 4,396 Renovation fund 25,441 24,313 Write-off of financial assets 4) –128 –14,070 Aircraft noise 37,283 33,843 Airport of Zurich Noise Fund as of 31 December 185,449 161,595 Financial liabilities transaction costs 2,772 3,286 Financial liabilities issuing costs 3,554 2,880 Cross currency interest rate swaps 46,734 41,064 1) Transfer of a portion of Airport of Zurich Noise Fund to the Canton of Zurich in accordance with the agreed prefinancing solution. Interest rate swap 0 221 2) Excluding the proportion of collected revenue from noise charges for the Canton of Zurich as of 1 July 2008. Private placements and liabilities from US car park lease 25,454 20,799 3) In addition to compensation payments for formal expropriations, this amount includes other associated external costs (in accordance with regulations of the Airport of Zurich Noise Miscellaneous items 458 457 Fund; see note 16 “Non-current provisions for sound insulation and formal expropriations”). Deferred tax (gross) 46,734 149,689 41,285 137,744 4) Including write-off in 2008 of Sigma Finance Corp. (11.4 million Swiss francs). Offsetting of assets and liabilities –46,734 –46,734 –41,285 –41,285 Deferred tax liability (net) 0 102,955 0 96,459 Summary of assets invested for the Airport of Zurich Noise Fund:

(CHF 1,000) 31.12.2009 31.12.2008 As of 31 December 2009, the subsidiaries of Flughafen Zürich AG amount cited above, 2.6 million Swiss francs expires in 2010, 0.4 Cash equivalents (see note 13, “Cash and cash equivalents”) 7,013 22,374 had total losses brought forward of 6.4 million Swiss francs to be off- million in 2011, 2.4 million in 2012, 0.3 million in 2014, 0.2 million in Current available-for-sale securities (see note 8, “Financial assets of Airport of Zurich Noise Fund”) 80,334 65,823 set against taxes. Deferred tax assets on these losses have not been 2015 and 0.5 million in 2016. Non-current available-for-sale securities (see note 8, “Financial assets of Airport of Zurich Noise Fund”) 97,922 72,965 recognised since it is not probable that future taxable profit will be 1) Accrued asset/(liability) towards Flughafen Zürich AG 180 433 available against which the group can utilise the benefits. Of the total Total assets invested for Airport of Zurich Noise Fund 185,449 161,595

1) For accounting reasons, an accrual towards Flughafen Zürich AG arises as of balance sheet date. This is compensated in the month following, so the balance of liquid funds is restored.

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19) Deferred revenue As before, an amount of 1.1 million Swiss francs from invoiced utilisation 21) Other current debt, accruals and deferrals fees has not been included. These invoiced amounts have been Deferred revenue from utilisation fees deferred, since one partner continues to dispute the legality of the Utilisation fees were billed for one year in 2006 and suspended as collection of utilisation fees. The corresponding legal proceedings are (CHF 1,000) 31.12.2009 31.12.2008 of 1 January 2007. In 2007 a legally binding court ruling went largely in progress, and a first-instance ruling is expected in the course of Expenses not invoiced 34,410 24,452 in favour of Flughafen Zürich AG, confirming that the collection of 2010. Accrued interest on financial liabilities 18,094 15,803 utilisation fees from companies providing ground handling services Investments not invoiced 10,689 10,672 was lawful. As a consequence, from the total of 10.0 million Swiss Deferred income 4,993 7,059 Deferred income and accruals 68,186 57,986 francs invoiced in the 2006 financial year, 6.4 million were reported Fair value of cross currency interest rate swaps 1) 227,969 200,313 in the 2007 income statement as other expenses/income, net. Fair value of interest rate swap 0 9,660 Amounts due to personnel (holidays and overtime) 5,273 7,517 Deposits and advance payments by customers 4,574 4,221 20) Retirement benefit plans Current provisions 2,400 2,400 Social security contributions 1,128 3,147 Other liabilities 1,625 649 The retirement benefit obligation reported for the year under review refers to the special plan with the BVK for compensation for early Total other current debt, accruals and deferrals 311,155 285,893

1) See also note 15, “Financial liabilities”. Balance sheet (CHF 1,000) 31.12.2009 31.12.2008 Provision for retirement benefits, present value 3,444 3,409 Unrecognised actuarial gains/(losses) 1,377 1,099 The following financial instruments are included in other current debt, accruals and deferrals: Unrecognised past service cost –1,113 –1,065 Liability on balance sheet 3,708 3,443 (CHF 1,000) 31.12.2009 31.12.2008 Expenses not invoiced 34,410 24,452 Accrued interest on financial liabilities 18,094 15,803 Investments not invoiced 10,689 10,672 Income statement Total liabilities carried at amortised cost 63,193 50,927 (CHF 1,000) 2009 2008 Fair value of interest rate swap 0 9,660 Interest expenses 109 117 Total financial instruments held for trading purposes 0 9,660 Net periodic pension cost 109 117 Fair value of cross currency interest rate swaps 1) 227,969 200,313 Total financial instruments held for hedging purposes 227,969 200,313 Amounts due to personnel (holidays and overtime) 5,273 7,517 Deposits and advance payments by customers 4,574 4,221 All pension fund costs are reported as personnel expenses (see note 2, “Personnel expenses”). Deferred income 4,993 7,059 Current provisions 2,400 2,400 Social security contributions 1,128 3,147 Change in provisions for retirement benefits in the balance sheet Other liabilities 1,625 649 (CHF 1,000) 2009 2008 Total other current debt, accruals and deferrals excluding financial instruments 19,993 24,993 Opening balance as of 1 January 3,443 2,918 Net periodic pension income (cost) 109 117 Total other current debt, accruals and deferrals 311,155 285,893 Benefits paid in directly by employer –656 –589 Recognition of unrecognised past service cost 1,065 997 1) See also note 15, “Financial liabilities”. Unrecognised actuarial (gains)/losses –253 0 Closing balance as of 31 December 3,708 3,443

The expenses not yet invoiced as of balance sheet date mainly concern purchases effected in the fourth quarter of 2009 or in December 2009 that will be invoiced by the suppliers concerned in early 2010.

(CHF 1,000) 2009 2008 Experience adjustments –531 –819

The calculation of provisions for retirement benefits was based on the following assumptions:

2009 2008 Discount rate in % 3.50 3.50 Expected future pension increase in % 1.0 1.0

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22) Further details Specialised units Flughafen Zürich AG invests its cash and cash equivalents as deposits a weekly basis. Where necessary, terms of payment aimed at Specialised units perform specific risk-related cross-section functions with leading Swiss banks with a Standard & Poor’s rating of at least minimising risk (normally proforma invoicing) are applied, or 22.1) Information concerning the performance of a risk within the group (e.g. cash management, operational safety, “A”. In addition, the company minimises other risks relating to cash securities are requested (mainly in the form of bank guarantees). assessment occu­pational safety and health, information security, fire prevention, and cash equivalents in that it does not invest with a single bank, but contingency planning) co-ordinated through the Risk Management with a variety of financial service providers. The financial investments of the Airport of Zurich Noise Fund are Flughafen Zürich AG has set itself the strategic goal of formulating a Centre. managed by professional financial institutions on the basis of a comprehensive risk management system, and is committed to As a rule, accruals as of balance sheet date are invoiced within conservative, money-market-oriented investment strategy. Here, carrying out uniform and systematic risk management in the future. The risk management organisation periodically reviews the risk one month and subsequently monitored within the scope of trade preservation of value and flexibility with respect to early redemption management system in order to ensure that any changes in the receivables management. of investments are of the highest priority. The use of derivative For Flughafen Zürich AG, risk management means approaching and commercial and regulatory environment, and in the corporate financial instruments is forbidden. The investment horizon is based managing risk in a clearly defined and conscious manner, thereby structure, are adequately reflected. With the exception of Swiss as the main client, credit risk is distributed on the expected obligation to make payments from the Airport of securing transparency in regard to all risks associated with its over a broad clientele. Trade receivables include the amount of Zurich Noise Fund, and averages two to four years. The minimum business activities, and constantly improving and monitoring the Risk reporting encompasses detailed descriptions of each identified 46.0 million Swiss francs due from Swiss (2008: 43.3 million) (see acceptable rating is BBB (Standard & Poor’s) or Baa2 (Moody’s), or group’s risk situation. risk, together with an assessment of the probability of occurrence note 11, “Trade receivables”). In the period between balance sheet an equivalent rating from a recognised agency (see note 17, “Airport as well as of potential operational and/or financial impacts. A plan date and the preparation of the 2009 annual report, Swiss had paid of Zurich Noise Fund”). At Flughafen Zurich AG the risk management system is a valuable of measures is also defined, which outlines how each identified risk the outstanding amount in full as of 31 December 2009. practical tool for managing corporate risk. It comprises the following can be minimised. The risk management organisation constantly The maximum exposure to credit risk corresponds to the carrying components: monitors the implementation of the defined measures. The exposure to credit risk primarily depends on the individual amounts of the individual financial assets. No guarantees or similar characteristics of each client. Risk assessments include a commitments exist that could give rise to an increase of the credit • Risk policy objectives and principles a) Financial risk management creditworthiness check, taking account of the client’s financial exposure above the respective carrying amounts. The maximum • Risk management organisation Due to the nature of its activities, Flughafen Zürich AG is exposed to circumstances, business background and other factors. The exposure to credit risk as of balance sheet date was as follows: • Risk management process (method for managing risk) various financial risks, including: maturity structure of trade receivables is normally examined on • Risk reporting and risk dialogue • Auditing and review of the risk management system i) Credit risk • Risk culture ii) Liquidity risk (CHF 1,000) 31.12.2009 31.12.2008 iii) Market risk (foreign currency and interest rate risks) Cash equivalents (excluding cash on hand) 231,482 73,893 Risk management organisation forms the backbone of this system Non-current financial assets of Airport of Zurich Noise Fund 97,922 72,965 and it encompasses the following roles and competencies: The following sections provide an overview of the extent of the various Trade receivables, net 114,687 108,651 financial risks and the objectives, principles and processes relating Current financial assets of Airport of Zurich Noise Fund 80,334 65,823 Other receivables (accruals) 17,162 14,366 Board of Directors, Management Board and Chief Risk Officer to the assessment, monitoring and hedging of risks, as well as of the Other financial assets 11 1,125 The Board of Directors and Management Board bear the overall capital management of the group. Further information may also be Total maximum exposure to credit risk 541,598 336,823 responsibility under company law for securing the group’s existence found in the corresponding notes. and profitability. The Board of Directors is responsible for the overall supervision of risk management and performs this duty with the aid i) Credit risk of internal audits. The Chief Financial Officer is simultaneously the Credit risk refers to the risk that Flughafen Zürich AG could incur ii) Liquidity risk an adequate reserve of liquid funds, ensuring the availability of Management Board’s risk management officer (Chief Risk Officer). losses if a customer or counterparty to a financial instrument fails to Liquidity risk refers to the risk that Flughafen Zürich AG may not be sufficient funds for financing purposes by securing adequate credit meet its contractual obligations. able to meet its financial obligations on due date. limits, and being able to issue shares on the market. For this purpose, Risk Management Centre the company uses rolling liquidity planning that is based on expected The Risk Management Centre is headed by the Corporate Risk Cash and cash equivalents, accruals, trade receivables and other Flughafen Zürich AG monitors liquidity risk via a carefully conceived cash flows and is periodically updated. Group Treasury is responsible Ma­nager, who is answerable to the Chief Risk Officer. It supports financial assets are exposed to credit risk. liquidity management process. Here it observes the principle that it for monitoring liquidity risk. As of balance sheet date, Flughafen line management in all matters relating to risk management and is must have sufficient flexibility and room for manoeuvre with respect Zürich AG had the following unused credit limits at its disposal: responsible for the operation and further development of the risk to the availability of liquid funds at short notice. This means maintaining management system.

Line management (divisions and corporate centres) (CHF 1,000) Duration 31.12.2009 31.12.2008 Line units and individual line managers bear the responsibility for Canton of Zurich 19.7.2012 659,600 679,000 risks and they manage these risks within the scope of the risk Operating credit lines (committed credit lines) 1) 31.12.2010 300,000 250,000 management system (risk owner concept). Airport of Zurich Noise Fund (committed credit line) 31.12.2015 200,000 200,000 Total credit lines 1,159,600 1,129,000 Utilisation 2) –169,322 –146,250 Total unused credit lines 990,278 982,750

1) As of 31 January 2009, the operating credit lines were increased to 300 million Swiss francs (with duration until 31 December 2010). 2) Letter of credit and bank guarantees.

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The table below shows the contractual maturities of financial liabilities (including interest payments) held by Flughafen Zürich AG: An appreciation or depreciation in the exchange rate of the Swiss amounts in the table below. This analysis assumes that all other franc by 10 percent against the currencies below as of 31 December variables – in particular interest rates – are unchanged. The analysis 2009 would have increased or decreased equity and profit by the for 2008 was based on the same assumptions. 31.12.2009 Carrying Contractual Due within 1 Due within 2 to Due in more (CHF 1,000) amount cash flows year 5 years than 5 years Japanese private placement 409,131 595,144 12,438 49,751 532,955 US private placement 279,282 345,717 17,915 269,408 58,394 Appreciation of CHF (plus 10%) Depreciation of CHF (minus 10%) Debentures 372,784 430,313 164,813 265,500 0 (CHF 1,000) Equity Profit Equity Profit US car park lease 123,472 139,503 47,010 92,493 0 Yen 28,139 0 –24,181 0 Lease liabilities 63,456 78,148 7,341 29,363 41,444 US dollars –6,805 0 17,021 0 Trade payables 33,407 33,407 33,407 0 0 31 December 2009 21,334 0 –7,160 0 Other current debt and accruals 63,192 63,192 63,192 0 0 Total non-derivative financial liabilities 1,344,724 1,685,424 346,116 706,515 632,793 Cross currency interest rate swaps 227,969 291,516 22,453 135,562 133,501 Appreciation of CHF (plus 10%) Depreciation of CHF (minus 10%) Total derivative financial liabilities 227,969 291,516 22,453 135,562 133,501 (CHF 1,000) Equity Profit Equity Profit Total 1,572,693 1,976,940 368,569 842,077 766,294 Yen 25,374 0 –19,221 0 US dollars –27,490 0 17,286 0 31 December 2008 –2,116 0 –1,935 0

31.12.2008 Carrying Contractual Due within 1 Due within 2 to Due in more (CHF 1,000) amount cash flows year 5 years than 5 years Japanese private placement 428,883 633,418 12,814 51,257 569,347 US private placement 287,242 374,640 18,457 232,167 124,016 iiib) Interest rate risk All non-current financing transactions have been concluded at Debentures 277,392 292,815 138,128 154,688 0 Interest rate risk can be divided into an interest-related cash flow a fixed interest rate. The risk on short-term variable advances is US car park lease 166,652 192,661 48,934 143,727 0 risk, i.e. the risk that future interest payments could change due to hedged on a case-to-case basis using interest rate swaps. Lease liabilities 68,108 86,614 7,477 29,910 49,227 fluctuations of the market interest rate, and an interest-related risk of Trade payables 50,049 50,049 50,049 0 0 a change in fair value, i.e. the risk that the fair value of an instrument The financial assets of Airport of Zurich Noise Fund are primarily Other current debt and accruals 50,889 50,889 50,889 0 0 could change due to fluctuations in the market interest rate. invested in fixed-rate debt instruments. The use of derivative Total non-derivative financial liabilities 1,329,215 1,681,086 326,748 611,749 742,590 financial instruments is not permitted. Cross currency interest rate swaps 200,313 271,039 19,671 117,352 134,016 Interest rate swap 9,660 9,665 9,665 0 0 Preference is normally given to external financing denominated in Total derivative financial liabilities 209,973 280,704 29,336 117,352 134,016 Swiss francs and subject to fixed interest rate payments. However, As of the balance sheet date, Flughafen Zurich AG’s interest rate Total 1,539,188 1,961,790 356,083 729,101 876,606 if external financing in foreign currencies is obtainable at more profile was as follows (interest-bearing financial instruments): attractive conditions, both the currency and the interest rate risk are hedged. With foreign currency transactions the aim is to hedge the iii) Market risk (foreign currency and interest rate risks) Flughafen Zürich AG is exposed to currency risk in connection with cash flows in Swiss francs. Market risk refers to the risk that changes in market prices such the following financial transactions: private placements in US dollars as exchange rates and interest rates could have an impact on the and Japanese yen, and liabilities in US dollars towards banks arising financial result or the value of the financial instruments. from the US car park lease. The currency risk on the Japanese private (CHF 1,000) 31.12.2009 31.12.2008 placement has been largely hedged, and the currency risk on the US Fixed interest financial assets of Airport of Zurich Noise Fund 178,256 138,788 The objective of market risk management is to monitor and control private placement and the US car park lease has been fully hedged. Fixed interest financial instruments (assets) 178,256 138,788 such risks in order to ensure they do not exceed a specified limit. In the area of operations, virtually all of the group’s transactions are Cash and cash equivalents 224,680 51,664 in Swiss francs, which means that no further currency risks need to Liquid funds of Airport of Zurich Noise Fund 7,013 22,374 Variable interest financial instruments (assets) 231,693 74,038 iiia) Currency risk be hedged. Total interest bearing assets 409,949 212,826 Currency risks arise in association with transactions that are carried out in currencies that differ from the respective functional currencies Japanese private placement –409,131 –428,883 of the group’s entities. US private placement –279,282 –287,242 Debentures –372,784 –277,392 US car park lease –123,472 –166,652 Cross currency interest rate swaps –227,969 –200,313 The table below shows the currency risks arising from financial instruments in currencies other than Swiss francs: Interest rate swap 0 –9,660 Leasing liabilities –63,456 0 Fixed interest financial instruments (liabilities) –1,476,094 –1,370,142 31.12.2009 31.12.2008 Leasing liabilities 0 –68,108 (CHF 1,000) Yen US dollars Yen US dollars Other current financial liabilities 0 –3,555 Current financial liabilities 0 39,785 0 39,767 Variable interest financial instruments (liabilities) 0 –71,663 Debentures and non-current loans 409,131 362,969 428,883 414,127 Total interest bearing liabilities –1,476,094 –1,441,805 Cross currency interest rate swaps 7,228 248,671 12,836 236,212 Total 416,359 651,425 441,719 690,106

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The table below shows the sensitivity analysis for variable and fixed-rate financial instruments with a deviation of 50 basis points: d) Fair value hierarchy of financial instruments Level 2, valuation based on observable input factors – The assets or Since 1 January 2009, financial assets and liabilities recognised at fair liabilities are valued on the basis of input factors (with the exception value have been categorised according to the following hierarchy, of the quoted market prices, level 1), which are directly or indirectly Increase by 50 bp Decrease by 50 bp reflecting the significance of the input factors used for measuring fair observable from market data for the asset or liability in question. (CHF 1,000) Equity Profit Equity Profit value: Variable interest rate financial instruments 0 921 0 –315 Fixed-interest financial instruments 8,711 0 –3,695 0 Level 3, valuation based on unobservable input factors – The input 31 December 2009 8,711 921 –3,695 –315 Level 1, quoted market prices – The input factors for valuing the assets factors for these assets or liabilities are not observable. Flughafen Variable interest rate financial instruments 0 12 0 –12 or liabilities are quoted, unadjusted market prices determined on Zürich AG does not have any assets or liabilities on this level. Fixed-interest financial instruments 2,919 7 3,392 –7 active markets for identical assets or liabilities on the day of valuation. 31 December 2008 2,919 19 3,392 –19

Assets/liabilities Level 2 (Valuation Level 3 (Valuation Total Level 1 (quoted based on observable based on unobservable at fair value b) Fair values Derivatives: The fair value of the cross currency interest rate swap is (CHF 1,000) market prices) input) input) 31.12.2009 The figures shown in the balance sheet concerning cash and cash determined using a fair value model. Available for sale equivalents, trade receivables, other current receivables and current Debt instruments 178,256 0 0 178,256 debt approximately correspond to fair values. Financial liabilities: The fair value of the fixed-interest financial liabilities corresponds to the present value of the future cash flows. The Other financial liabilities Financial assets in Airport of Zurich Noise Fund: The fair value discount rate corresponds to the market interest rate at the balance Derivatives used for hedging 0 –227,969 0 –227,969 corresponds to the market price of the securities as of balance sheet sheet date. date. e) Capital management 22.2) Tenancy agreements Carrying amount Fair value Carrying amount Fair value With respect to capital management, Flughafen Zürich AG pays special (CHF 1,000) 31.12.2009 31.12.2009 31.12.2008 31.12.2008 attention to securing the continuation of the group’s activities, The tenancy agreements entered into by the group in its capacity as Debentures 372,784 393,450 277,392 279,352 Japanese private placement 409,131 368,696 428,883 370,761 attaining an acceptable dividend for shareholders and optimising the landlord may be either fixed tenancy or turnover-based agreements. US private placement 279,282 299,066 287,242 314,016 balance sheet structure, particularly in periods of major investment US car park lease 123,472 129,082 166,652 174,926 activity, taking account of capital costs. In order to achieve these Fixed tenancy agreements Total 1,184,669 1,190,294 1,160,169 1,139,055 objectives, Flughafen Zürich AG can adjust the amount of the dividend These are divided into limited term and indefinite agreements. The payment or repay capital to shareholders. latter may be terminated within the normal legal period of notice of six months. c) Categories of financial instruments Flughafen Zürich AG constantly monitors the following key financial The following table shows the carrying amounts of all financial instruments per category: data: equity ratio, debt ratio and interest coverage. Here it is especially Turnover-based agreements important to ensure that the ratio between debt and equity is in line New tenancy agreements were concluded with all business partners (CHF 1,000) 31.12.2009 31.12.2008 with the budgetable cash flows and investments, and tends towards occupying commercial areas which have become available since 2003 Cash equivalents 231,482 73,893 the conservative side. In this way a high degree of entrepreneurial­ for rent on a turnover basis (this did not include transfer to new Trade receivables, net 114,687 108,651 flexibility can be assured at all times, including when unforeseeable premises). These new agreements generally comprise a fixed basic Other receivables and prepaid expenses 17,162 14,366 events occur. rent plus a turnover-based portion, with a fixed duration of 5 years Other financial assets 11 1,125 and the option of extension for another two years. The already existing Total loans and receivables 363,342 198,035 Current and non-current financial assets of Airport of Zurich Noise Fund 178,256 138,788 The necessary quantity of own shares may be held for the purpose of turnover-based tenancy agreements may be terminated within the Total available-for-sale financial assets 178,256 138,788 employee and bonus programmes, but it is not allowed to accumulate period of one year. Financial liabilities –1,248,124 –1,231,833 several years worth of own shares for the purposes of participation Trade payables, net –33,407 –50,049 programmes. Holding own shares to use as payment for acquisitions Other current debt and prepaid expenses, excluding derivatives and non-financial instruments –63,192 –50,927 (exchange of shares in the event of possible take-overs) is forbidden, Total liabilities carried at amortised cost –1,344,723 –1,332,809 and own shares may also not be held for the purpose of speculation Other current debt (interest rate swap) 0 –9,660 with respect to higher sale prices. The cumulative proportion of own Total liabilities held for trading purposes 0 –9,660 Other current debt (cross currency interest rate swap) –227,969 –200,313 shares may in no case exceed 10 percent. Total financial instruments held for hedging purposes –227,969 –200,313

- 123 - Financial report | Notes

22.3) Capital commitments Depending on future and final-instance legal judgements, especially a) Remuneration of related parties with respect to the area to the south, the “new” noise-related liabilities As of the balance sheet date, capital commitments exist for various in future may also be subject to substantial adjustments, which In the year under review, the following amounts were paid to related parties in the form of remuneration: engineering structures amounting to approximately 215 million would also require corrections in the noise-related costs recognised Swiss francs. The most significant capital commitments concern the as assets and liabilities in the balance sheet. In this case, prefinancing Board of Directors in 2009: construction of the new Dock B (110 million Swiss francs) and the by the Canton of Zurich and the split of noise charges would presumably new central security check building (85 million Swiss francs). continue to apply. At the present time, it is not possible to reliably estimate the total costs to capitalise as intangible assets from the Within the framework of the airport participation in Venezuela, the right of formal expropriation, the amortisation period or the syndicate, in which Unique (Flughafen Zürich AG) holds a 49.5 corresponding provision. percent stake, has entered into an agreement with the local government to implement an investment programme worth a total of 34 million 22.5) Related parties US dollars over the next 20 years. The investments in question will (CHF) only be made if certain basic conditions are fulfilled and will be Related parties are: Recipient Function members for Remuneration of Directors of the Board for Remuneration meetings board attending for Remuneration membership committee for Remuneration meetings committee contributions Social security Total largely financed from the expected operating cash flows. As long as Andreas Schmid Chairman 150,000 20,000 10,000 10,000 11,512 201,512 no agreement can be reached in the legal dispute (expropriation) • Canton of Zurich Dr. Lukas Briner Vice Chairman 60,000 20,000 5,000 7,500 5,935 98,435 with the local government, all capital commitments are suspended • Members of the Board of Directors Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 45,000 20,000 10,000 7,500 5,293 87,793 Martin Candrian Member; Chairman of the Audit & Finance Committee 45,000 17,500 10,000 5,000 4,972 82,472 (see note 9, “Investments in associates”). • Members of the Management Board Dr. Martin Wetter Member 45,000 20,000 5,000 7,500 4,972 82,472 Ulrik Svensson Member 45,000 17,500 5,000 5,000 0 72,500 22.4) Contingent liabilities The Canton of Zurich has contractually agreed with Flughafen Zürich Dr. Elmar Ledergerber 1) Member 18,000 17,500 0 5,000 2,598 43,098 AG to assume the prefinancing for “old” aircraft noise compensation Rita Fuhrer 2) Member 0 4,000 0 0 257 4,257 A number of legal proceedings and claims against Flughafen Zürich AG payments. Furthermore, the Canton of Zurich has granted Flughafen Total 408,000 136,500 45,000 47,500 35,539 672,539 within the scope of normal business activities are still pending. In the Zürich AG a credit facility with a duration of 10 years (2002–2012) 1) In addition, a lump sum of 32,000 Swiss francs was paid to the City of Zurich. opinion of the company, the amount required for settling these lawsuits­ within the scope of a framework credit agreement. The maximum 2) In addition, a lump sum of 58,500 Swiss francs was paid to the Department of Economics of the Canton of Zurich. and claims will not have a significant negative impact on the consolidated­ available amount of this credit facility corresponds to the total financial statements and cash flow of Flughafen Zürich AG. invest­ments in engineering structures relating to expansion stage 5, after adjustment for the depreciation to be carried out on these If, on the basis of future legal practice, total noise-related costs in investments. The credit facility limit was 659.6 million Swiss francs Board of Directors in 2008: the worst case (“negative case”) should ultimately be below the as of 31 December 2009. It is presently not being used. applicable threshold (see “Significant estimates and assumptions in the application of accounting policies”, point 5, pages 96 and 97), the Canton of Zurich would no longer be required under the supplementary agreement of 8 March 2006 to assume the prefinancing of the “old” noise-related liabilities. In this case, Flughafen Zürich AG would assume the still unpaid “old” noise-related liabilities and in return would receive back the Canton of Zurich’s corresponding (CHF)

share of the assets from the Airport of Zurich Noise Fund (“reversal”). Recipient Function members for Remuneration of Directors of the Board for Remuneration meetings board attending for Remuneration membership committee for Remuneration meetings committee contributions Social security Total As of that date the splitting of noise charges would also no longer Andreas Schmid Chairman 150,000 25,000 10,000 22,500 12,449 219,949 apply. At that point in time Flughafen Zürich AG would make a Dr. Lukas Briner Vice Chairman 60,000 25,000 5,000 22,500 7,218 119,718 current estimate of the total outstanding noise-related liabilities Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 45,000 25,000 10,000 22,500 6,576 109,076 Martin Candrian Member; Chairman of the Audit & Finance Committee 45,000 25,000 10,000 5,000 5,454 90,454 and make adjustments to the noise-related costs on both the asset Dr. Martin Wetter Member 45,000 25,000 5,000 15,000 5,774 95,774 and liability sides of the balance sheet. Ulrik Svensson (from 17.4.2008) Member 33,750 17,500 3,750 2,500 0 57,500 Dr. Elmar Ledergerber 1) Member 0 25,000 0 5,000 1,925 31,925 Rita Fuhrer 2) Member 0 8,500 0 0 545 9,045 Total 378,750 176,000 43,750 95,000 39,941 733,441

1) In addition, a lump sum of 50,000 Swiss francs was paid to the City of Zurich. 2) In addition, a lump sum of 66,500 Swiss francs was paid to the Department of Economics of the Canton of Zurich.

There is no share or option programme for the Board of Directors (see note 2, “Personnel expenses”). No severance payments or other non-current payments were made in 2008 or 2009.

- 125 - Financial report | Notes

Management Board in 2009: b) Shares held by related parties

Remuneration of members of the Management Board was effected as shown in the table below. The bonus (cash and share components) is As of balance sheet date, members of the Board of Directors and related parties held the following number of shares: accrued for the period under review, and payment is made in spring in the following year. Number of Number of shares as of shares as of Name Function 31.12.2009 31.12.2008 Andreas Schmid Chairman 4 4 Dr. Lukas Briner Vice Chairman 21 21 Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 13 13 Martin Candrian Member; Chairman of the Audit & Finance Committee 375 375 Dr. Martin Wetter Member 0 0 Ulrik Svensson Member 0 0 1) Dr. Elmar Ledergerber Member 110 110 (CHF) Rita Fuhrer Member 0 0

Recipient Salary Bonus (cash) Bonus (shares) insurance and social Pension expenses Miscellaneous CHF Total of shares Number price (CHF) Share Total 523 523 Thomas E. Kern 370,000 308,333 154,167 139,490 26,478 998,468 495 311.25 Other members of the Management Board 1,283,333 548,829 274,414 397,974 111,641 2,616,191 882 311.25 Total 1,653,333 857,162 428,581 537,464 138,119 3,614,659 1,377 As of balance sheet date, members of the Management Board and related parties held the following number of shares: 1) Pension and social insurance expenses include contributions to supplementary retirement insurance, as well as employer‘s contributions to social security and staff benefit schemes. Number of Number of shares as of shares as of The number of shares indicated above for the bonus portion is based These shares are blocked for a period of four years (see also “Notes Name 31.12.2009 31.12.2008 on the share price as of the end of the year. The definitive number of to the consolidated financial statements”, note 2, “Personnel Thomas E. Kern 690 137 shares is calculated on the basis of the share price at grant date. expenses”). No severance payments or other non-current payments Peter Eriksson 1,534 1,315 Rainer Hiltebrand 1,259 984 were made in 2009. Daniel Schmucki 415 272 Michael Schallhart 32 0 Stephan Widrig 214 119 Management Board in 2008: Total 4,144 2,827

Neither members of the Board of Directors nor the Management Board held options on the company‘s shares as of the balance sheet date.

22.6) Composition of the group

The group currently comprises the following companies: 1)

(CHF) Company Domicile Share capital Stake held in %

Recipient Salary Bonus (cash) Bonus (shares) insurance and social Pension expenses Miscellaneous CHF Total of shares Number price (CHF) Share Flughafen Zürich AG Kloten CHF ‚000 307,019 Parent company Thomas E. Kern 336,828 269,462 134,731 109,685 24,648 875,354 540 249.50 Unique Betriebsysteme AG Kloten CHF ‚000 100 100.0 Other members of the Management Board 1,222,945 641,471 189,933 506,701 93,759 2,654,809 762 249.50 APT Airport Technologies AG Kloten CHF ‚000 1,800 100.0 Total 1,559,773 910,933 324,664 616,386 118,407 3,530,163 1,302 Unique Airports Worldwide AG Kloten CHF ‚000 100 100.0 Unique Chile S.A. Santiago de Chile CLP million 4,325 100.0 1) Pension and social insurance expenses include contributions to supplementary retirement insurance, as well as employer‘s contributions to social security and staff benefit schemes. In the 2008 annual report, supplementary retirement insurance was not recognised in pension and social insurance expenses. This is shown correctly for 2008 in the table above. In addition, the following associates and joint ventures are included by applying the equity method:

The final amount paid to the Management Board for 2008 was 3.6 In the year under review, the Canton of Zurich police force was Company Domicile Share capital Stake held in % million Swiss francs. reimbursed at market conditions for services rendered for a total Bangalore International Airport Ltd. Bengaluru INR million 3,846 5.0 Unique IDC Operaciones Ltda. Santiago de Chile CLP million 2,360 49.5 amount of 92.8 million Swiss francs (2008: 91.4 million) in A-port S.A São Paulo BRL million 117 15.0 accordance with the applicable service level agreement. Concessionária do Estacionamento de Congonhas S.A. São Paulo BRL million 17 12.0 Curaçao Airport Investments N.V. Curaçao USD million 17 7.7 A-port Chile S.A. Santiago de Chile CLP million 9,770 15.0 Concesión Aeropuerto El Tepual S.A. Santiago de Chile CLP million 706 15.0 Concesión Aeropuerto La Florida S.A. Santiago de Chile CLP million 970 15.0 Concesión Aeropuerto El Loa S.A. Santiago de Chile CLP million 641 15.0 Sociedad Concesionaria Aeropuerto Puerto Montt S.A. Santiago de Chile CLP million 1,010 5.0 A-port Operaciones S.A. Santiago de Chile CLP million 1,724 32.6 A-port Operaciones Colombia S.A.S. Bogotá COP million 100 32.6 Unique IDC S.A. de C.V. Tegucigalpa HNL ‚000 40 32.6 Administradora Unique IDC C.A. Porlamar VEB million 25 49.5 Aeropuertos Asociados de Venezuela C.A. Porlamar VEB million 10 49.5

- 127 - Financial report | Notes Financial report | Audit report

22.7) Notes to service concession agreements Assignment of parts of operating licence to third parties Report of the Statutory Auditor on the Consolidated Financial Opinion As part of the bilateral agreements that came into effect on 1 June Statements to the General Meeting of Shareholders of Flughafen In our opinion, the consolidated financial statements for the year The Swiss Federal Department of the Environment, Transport, Energy 2002, the EU ground handling guidelines (Directive 96/67/EU dated Zürich AG. ended 31 December 2009 give a true and fair view of the financial and Communications (DETEC) awarded Flughafen Zürich AG the 15 October 1996 concerning free access for ground handling service position, the results of operations and the cash flows in accordance operating licence for Zurich Airport for 50 years from 1 June 2001 to providers to airports within the EU) also became applicable to As statutory auditor, we have audited the accompanying consolidated with the International Financial Reporting Standards (IFRS) and 31 May 2051. Switzer­land. The principles governing the granting of rights for carrying financial statements of Flughafen Zürich AG, which comprise the comply with Swiss law. out ground handling activities are defined in the operating regulations income statement, statement of comprehensive income, balance Main conditions of Flughafen Zürich AG. As a consequence, licences for ground handling sheet, statement of changes in equity, cash flow statement and notes Without qualifying our opinion, we draw attention to the disclosure The licence encompasses the operation of an airport in accordance operations in areas in which the number of admissible service (pages 82 to 128) for the year ended 31 December 2009. regarding “1. Legal issues” and “5. Reporting of noise-related costs with the provisions of the ICAO (International Civil Aviation providers has to be limited have been awarded on the basis of tender in the financial statements” as part of “Significant estimates and Organisation) governing domestic, international and intercontinental procedures and will run until the end of 2011. Board of Directors’ Responsibility assumptions in the application of accounting policies” on pages 96 civil aviation services. The board of directors is responsible for the preparation and fair to 97 in the notes to the financial statements. The facts referred to 22.8) Events occurring after the balance sheet date presentation of the consolidated financial statements in accordance therein could significantly affect the company’s financial position Flughafen Zürich AG is authorised and obliged to operate Zurich with the International Financial Reporting Standards (IFRS) and and performance. Such impact cannot presently be conclusively Airport for the entire period cited in the operating licence, and to The Board of Directors authorised the 2009 consolidated financial the requirements of Swiss law. This responsibility includes designing, determined. provide and maintain the necessary infrastructure for this purpose. statements for issue on 4 March 2010. These also have to be implementing and maintaining an internal control system relevant To accomplish this, it is entitled to collect fees from all users of the approved by the General Meeting of Shareholders. to the preparation and fair presentation of consolidated financial Report on Other Legal Requirements airport. statements that are free from material misstatement, whether due We confirm that we meet the legal requirements on licensing No events occurred between 31 December 2009 and the date on to fraud or error. The board of directors is further responsible for according to the Auditor Oversight Act (AOA) and independence Furthermore, Flughafen Zürich AG is authorised to assign specific which the consolidated financial statements were authorised for selecting and applying appropriate accounting policies and making (article 728 CO and article 11 AOA) and that there are no rights and obligations arising from the operating licence to third issue by the Board of Directors which would require the modification accounting estimates that are reasonable in the circumstances. circumstances incompatible with our independence. parties. Insofar as they concern activities relating to airport operations of any of the carrying amounts of the assets and liabilities of such as refuelling, aircraft handling, passenger handling, baggage the group or which would have to be disclosed here. Auditor’s Responsibility In accordance with article 728a paragraph 1 item 3 of the Swiss Code sorting and handling, post and freight handling, and catering, these Our responsibility is to express an opinion on these consolidated of Obligations and Swiss Auditing Standard 890, we confirm that rights and obligations shall be subject to the provisions of public law. financial statements based on our audit. We conducted our audit in an internal control system exists, which has been designed for the Flughafen Zürich AG regulates rights and obligations it has assigned accordance with Swiss law and Swiss Auditing Standards as well as preparation of consolidated financial statements according to the to third parties in the form of binding entitlements (concessions). International Standards on Auditing. Those standards require that instructions of the board of directors. we plan and perform the audit to obtain reasonable assurance Obligations whether the consolidated financial statements are free from material We recommend that the consolidated financial statements submitted The licence holder is obliged to grant access to the airport to all misstatement. to you be approved. aircraft that are licensed to provide domestic and international flights. The volume of flight traffic and handling of licensed aircraft An audit involves performing procedures to obtain audit evidence are governed by the regulations laid down in the Civil Aviation about the amounts and disclosures in the consolidated financial KPMG AG Infrastructure Plan (SIL) and the provisions of the operating statements. The procedures selected depend on the auditor's judgment, regulations. including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. The licence holder is obliged to implement all measures relating to In making those risk assessments, the auditor considers the internal regulations governing the use of German air space for landings at, control system relevant to the entity’s preparation of the consolidated and take-offs from, Zurich Airport without delay, and to submit the financial statements in order to design audit procedures that are Marc Ziegler Philipp Hallauer necessary applications for approval by the authorities in good time. appropriate in the circumstances, but not for the purpose of expressing Licensed Audit Expert Licensed Audit Expert an opinion on the effectiveness of the entity’s internal control Auditor in Charge The licence holder is empowered and obliged to enforce sound system. An audit also includes evaluating the appropriateness of the insulation measures and to implement them where they are not the accounting policies used and the reasonableness of accounting subject of dispute. estimates made, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit Zurich, 4 March 2010 The provision whereby the licence holder shall meet all obligations to evidence we have obtained is sufficient and appropriate to provide which it is bound through clauses of the civil aviation treaty between a basis for our audit opinion. Germany and Switzerland without entitlement to compensation was declared null and void in response to an objection lodged by Flughafen Zürich AG.

- 129 - Financial statements according to the provisions of the Swiss Code of Obligations (OR) Income statement 132 Balance sheet 133

Notes to the financial statements Accounting policies 134 Current risk situation 135 Notes 137 Distribution of available earnings 145

Audit report 146

- 131 - Financial report | Income statement Financial report | Balance sheet

Income statement Balance sheet (Financial statements according to the provisions of the Swiss Code of Obligations) (Financial statements according to the provisions of the Swiss Code of Obligations)

(CHF 1,000) Notes 2009 2008 (CHF 1,000) Notes 31.12.2009 31.12.2008 Revenue from goods and services 812,535 846,821 Assets Total revenue 812,535 846,821 Land 109,547 109,547 Buildings, engineering structures (15) 2,023,231 2,132,651 Personnel expenses –152,929 –147,809 Projects in progress (15) 194,322 91,744 Police and security –113,458 –113,017 Movables (15) 84,278 85,542 Expenses for sound insulation and formal expropriations (9) –26,634 –43,617 Total property, plant and equipment 2,411,378 2,419,484 Maintenance –28,937 –32,376 Intangible asset from right of formal expropriation 107,836 113,470 Sales, marketing, administration –37,647 –38,326 Other intangible assets 3,794 7,946 Energy and waste –24,553 –25,015 Non-current financial assets of Airport of Zurich Noise Fund (4) 97,922 72,965 Other operating expenses –43,688 –39,205 Financial assets and associates (5) 21,998 18,917 Cost of materials used –11,490 –11,129 Non-current assets 2,642,928 2,632,782 Deposits into renovation fund –5,500 –5,500 Ordinary profit before depreciation and amortisation, interest and tax 367,699 390,827 Inventories 8,867 8,809 Current financial assets of Airport of Zurich Noise Fund (4) 80,334 65,823 Depreciation and amortisation –199,751 –199,402 Trade receivables 113,340 106,722 Ordinary profit before interest and tax 167,948 191,425 Other receivables and prepaid expenses (6) 27,675 34,459 Cash and cash equivalents, securities (7) 216,148 73,225 Current assets 446,364 289,038 Financial result, net (1) –67,185 –83,507 Gain on disposal of shares in associate (2) 98,644 0 Total assets 3,089,292 2,921,820 Extraordinary result, net (3) –2,297 –22,878 Equity and liabilities Share capital 307,019 307,019 Profit before tax 197,110 85,040 Legal reserves – Premium 533,290 533,290 – General reserves 19,060 19,060 Tax (6) –40,992 –17,581 – Reserves for own shares (7) 1,612 11,841 Other reserves 79,246 69,017 Available earnings Net profit 156,118 67,459 – Profit brought forward 129,397 89,565 – Dividend payment for 2008/2007 –30,640 –27,627 – Net profit 156,118 67,459 Equity 1,195,102 1,069,624

Debentures and non-current loans (8) 1,122,153 1,099,572 Provisions for aircraft noise (9) 302,546 284,148 Renovation fund 124,102 118,602 Non-current provisions (10) 5,208 4,943 Non-current liabilities 1,554,009 1,507,265

Trade payables 35,905 50,853 Current financial liabilities (11) 202,418 178,696 Other current debt, accruals and deferrals 81,701 86,285 Current provisions (12) 20,157 29,097 Current liabilities 340,181 344,931

Total liabilities 1,894,190 1,852,196

Total equity and liabilities 3,089,292 2,921,820

- 133 - Financial report | Notes to the financial statements | Accounting policies Financial report | Current risk situation

Notes to the financial statements 2.5 Costs associated with the issue of debentures and the Current risk situation 4. Hub carrier conclusion of long-term loans The following factors are regarded as the primary sources of risk for The national airline, Swiss, is the main client of Flughafen Zürich AG. Accounting policies In the financial statements according to commercial law, the transaction the company: Like any other hub airport, Zurich greatly depends on the operational costs are charged directly to the income statement, instead of being and financial development of its hub carrier. 1. General remarks amortised over the duration of the debenture or respective long-term 1. Legal issues The presentations and explanations below refer to the individual loan using the effective interest method, as is the case in the Various internal and external political restrictions could mean that 5. Reporting of noise-related costs in the financial statements financial statements pursuant to the provisions of Swiss commercial consolidated financial statements prepared in accordance with IFRS. Flughafen Zürich AG will not be able to fully utilise its infrastructure The reporting of noise-related costs in the financial statements is a law (Swiss Code of Obligations). These financial statements also and instead may give rise to additional investments and costs. These complex matter that involves significant assumptions and estimates serve for tax purposes and form the basis for the statutory business 2.6 Finance lease include: concerning the capitalisation of such costs and the obligation to of the General Meeting of Shareholders. In the IFRS consolidated financial statements, finance leases are recognise provisions. This complexity is attributable to a large variety recognised in the balance sheet, while in the financial statements • Cantonal initiatives calling for modification of Zurich cantonal of relevant legal bases, unclear or pending legal practice, and political 2. Valuation principles according to commercial law they are treated as off-balance-sheet airport legislation debate. Unless stated otherwise, the same principles apply as those used transactions and disclosed in the notes (“Miscellaneous”). • Zürcher Fluglärm-Index ZFI (Zurich Aircraft Noise Index) in the consolidated financial statements prepared in accordance with • SIL process (Civil Aviation Infrastructure Plan) Flughafen Zürich AG has received a total of around 19,000 noise- IFRS. 2.7 Derivative financial instruments • Rulings by the supervisory authorities relating to landing and related claims for compensation. Approximately 2,600 cases are These are not reported in the financial statements according to take-off procedures currently being examined by the Federal Assessments Commission. 2.1 Property, plant and equipment commercial law. • Unilateral ordinance issued by Germany In the meantime rulings have been received from the Swiss Federal In contrast to the consolidated financial statements according to IFRS, • Legal proceedings Supreme Court on the 18 selected pilot cases in the municipality of the influence of the reverse take-over is irrelevant (revaluation of 2.8 Noise-related data • Revision of the Swiss Federal Civil Aviation Act Opfikon. the FIG property, plant and equipment as of 1 January 2000, including Costs associated with formal expropriations qualify as an intangible deferred taxes). asset in accordance with the Swiss Code of Obligations. They are 2. Falling demand With respect to formal expropriations, the rulings on fundamental capitalised as assets at the latest when the counterparty has attained Experience over the past few years has shown that civil aviation is a issues by the Federal Supreme Court in the first half of 2008 enabled 2.2 Renovation fund an assertable claim. An equal amount is also recognised as a provision highly volatile business that reacts sensitively to external occurrences Flughafen Zürich AG to estimate the total costs for the first time, in As in previous years, the renovation fund, which is used for future at the same time. Adequate provisions are recognised for liabilities (acts of terrorism, outbreaks of disease or epidemics, economic spite of the remaining uncertainty factors influencing the accuracy of renovation in order to preserve the value of existing buildings, was arising from sound insulation measures. Amortisation of capitalised crises). This means that such events can lead to a fall in demand at this estimate. increased by 5.5 million Swiss francs (only in financial statements costs for formal expropriations is based on the conso­lidated financial Zurich Airport. according to commercial law). statements at least. Any balance of revenue after deduction of noise- related costs (compensation for formal expropriations, sound insulation 3. Additional security regulations 2.3 Own shares measures, operating costs, financing costs and amortisation) is Additional security regulations imposed by the authorities can also In contrast to the consolidated financial statements prepared in transferred to provisions for aircraft noise. give rise to increasing security costs and reduced revenue from accordance with IFRS, holdings of own shares as of 31 December 2009 commercial activities in the future. Given the delay between the time are reported under securities. Under the heading “Equity”, these at which such costs arise and the earliest possible refinancing via are reported as prescribed by the provisions of the Swiss Code of security charges, a negative impact on the result cannot be ruled out. Obligations. Furthermore, the distribution of free shares to employees and the unrealised gain on holdings as of 31 December 2009 were charged to the income statement.

2.4 Costs associated with the issue of new shares (share capital increase) In the financial statements according to commercial law, the transaction costs are capitalised and amortised using the straight- line method over 3 years instead of being deducted from the premium as is the case in the consolidated financial statements prepared in accordance with IFRS.

- 135 - Financial report | Current risk situation Financial report | Notes

Based on the fundamental issues on which the Supreme Court has On 26 May 2009 the Federal Administrative Court corrected a 1) Financial result, net ruled to date, the reliably estimated noise-related costs (“base case”) decision by the Federal Assessments Commission of 17 December as of 30 June 2008 amount to a total of 759.8 million Swiss francs 2007 that had set the date for the foreseeability of an eastern (including formal expropriations, costs for sound insulation measures approach as 1 January 1961. The Federal Administrative Court changed (CHF 1,000) 2009 2008 and all related operating costs). This means that the total estimated this date to 23 May 2000. After a detailed examination, Flughafen Interest expenses on debentures and non-current loans 63,943 61,250 costs associated with formal expropriations were below the previously Zürich AG decided to appeal this decision to the Federal Supreme Court. Less capitalised interest on borrowings for buildings under construction –1,526 –1,430 disclosed potential costs (in the form of a risk assessment) of between Net interest expenses on debentures and non-current loans 62,417 59,820 800 million and 1.2 billion Swiss francs. Based on the rulings pronounced to date by the Federal Supreme Interest difference related to interest rate swap 1,088 5,253 Other interest expenses 3,815 6,182 Court concerning fundamental issues, as of 31 December 2009 Other financial expenses 7,274 6,136 On 8 March 2006, Flughafen Zürich AG and the Canton of Zurich Flughafen Zürich AG is abiding by its original estimate of 30 June Interest expenses on finance lease payments 2,700 2,998 signed a supplementary agreement to the merger agreement dated 2008 in the amount of 759.8 million Swiss francs. This estimate Valuation adjustments of financial assets and associates 0 12,747 14 December 1999. The purpose of the supplementary agreement was based on a variety of assumptions, such as pending legal issues Financial expenses 77,294 93,136 was to limit the risks for the company associated with formal without a last-instance ruling. The date of the foreseeability of the expropriations. Under this supplementary agreement, the Canton eastern approach was another of these assumptions. Interest income and foreign exchange gains realised on financial assets of Airport of Zurich Noise Fund –3,383 –6,073 Interest income on postal cheque accounts and bank deposits/loans –670 –3,248 of Zurich would assume the prefinancing of all “old” noise-related Valuation adjustments of financial assets and associates –5,850 0 liabilities in the event that, upon payment of the first formal As of the balance sheet date, Flughafen Zürich AG had capitalised Net foreign exchange gains, interest on arrears –206 –308 expropriations, the risk should arise that the total estimated costs costs for formal expropriations in the financial statements according Financial income –10,109 –9,629 associated with aircraft noise (formal expropriations, costs for to the provisions of the Swiss Code of Obligations amounting to Total financial result, net 67,185 83,507 sound insulation and all related operating costs) could exceed 1.1 billion 107.8 million Swiss francs (capitalisation of the above-mentioned Swiss francs (“threshold”) given a worst case scenario (“negative portion of 115.4 million Swiss francs plus payments for pilot cases case”). less amortisation of the intangible asset) and had recognised provisions for airport noise amounting to 302.5 million Swiss francs Capitalised interest on borrowings for buildings under construction was calculated using an average interest rate of 5.36 percent in 2009 “Old” noise-related liabilities are liabilities that came into being prior (see note 9, “Provisions for airport noise”). (5.60 percent in 2008). to June 2001, up to which date the Canton of Zurich was holder of the operating licence, therefore making it liable for such If, on the basis of future legal practice, total noise-related costs in claims in an external capacity. The threshold is subject to an annual the worst case (“negative case”) should ultimately be below the 2) Gain on disposal of shares in associate adjustment based on the development of the equity of Flughafen applicable threshold, the Canton of Zurich would no longer be required Zürich AG. The threshold as of 31 December 2009 was higher than under the supplementary agreement of 8 March 2006 to assume the original level of 1.1 billion Swiss francs, but has no effect on the the prefinancing of the “old” noise-related liabilities. In this case, Flug- (CHF 1,000) 2009 prefinancing provided by the Canton of Zurich. hafen Zürich AG would assume the still unpaid “old” noise-related Gain on disposal of shares in BIAL 1) 98,644 liabilities and in return would receive back the Canton of Zurich’s Tax (withholding tax) –19,521 Since as of the middle of 2008, despite the estimate of 759.8 million corresponding share of the assets from the Airport of Zurich Noise Gain on disposal of shares in BIAL, net 79,123 Swiss francs stated above, the total estimated noise-related costs Fund (“reversal”). As of that date the splitting of noise charges would exceeded the threshold of 1.1 billion Swiss francs in the worst case also no longer apply. At that point in time Flughafen Zürich AG 1) Disposal of 12 percent of shares of Bangalore International Airport Ltd. (BIAL) in 2009. (“negative case”), the prefinancing by the Canton of Zurich for would make a current estimate of the total outstanding noise-related “old” noise-related liabilities entered into effect on 30 June 2008 in liabilities and make adjustments to the noise-related costs on both accordance with the supplementary agreement. This was subject to the the asset and liability sides of the balance sheet. condition that the still pending fundamental issues were decided against 3) Extraordinary result, net Flughafen Zürich AG. In return for bearing the risk and for financing the Depending on future and final-instance legal judgements, especially “old” noise-related liabilities, the Canton of Zurich received a with respect to the area to the south, the “new” noise-related liabilities portion of the Airport of Zurich Noise Fund as of 30 June 2008 (115.4 in future may also be subject to substantial adjustments, which would (CHF 1,000) 2009 2008 million Swiss francs). This amount was recognised in these financial also require corrections in the noise-related costs recognised as assets Extraordinary income 309 1,047 statements as an intangible asset arising from the right of formal and liabilities in the balance sheet. In this case, prefinancing by the Canton Extraordinary expenses –2,606 –23,925 expropriation, and represents a portion of the costs for “old” noise- of Zurich and the split of noise charges would presumably continue to Extraordinary result, net –2,297 –22,878 related liabilities, which since 1 July 2008 have been covered by the apply. At the present time, it is not possible to reliably estimate the Canton of Zurich, but until 30 June 2008 were financed by Flughafen total costs to capitalise as intangible assets from the right of formal Zürich AG through revenue from collected noise charges. As a expropriation, the amortisation period or the corresponding provision. result of the assumption of “old” noise-related liabilities by the Canton Extraordinary income includes the following main amounts: Extraordinary expenses include the following main amounts: of Zurich, Flughafen Zürich AG is no longer required to recognise a 2009: 0.1 million Swiss francs bankruptcy dividend Swissair 2009: 2.0 million Swiss francs from losses on disposals of provision for these “old” noise-related liabilities. (second instalment). non-current assets. 2008: 0.8 million Swiss francs bankruptcy dividend Swissair 2008: 21.3 million Swiss francs repayment to Swissair (first instalment). liquidator, and 2.5 million Swiss francs from losses on disposals of non-current assets.

- 137 - Financial report | Notes

4) Financial assets of Airport of Zurich Noise Fund 6) Other receivables and prepaid expenses

In accordance with “Notes to the Consolidated Financial Statements”, note 12, “Other receivables and prepaid expenses”, this includes the (CHF 1,000) 31.12.2009 31.12.2008 following: Non-current financial assets 97,922 72,965 Current financial assets 80,334 65,823 Total financial assets of Airport of Zurich Noise Fund 178,256 138,788 (CHF 1,000) 31.12.2009 31.12.2008 Current account with Zurich Airport Staff Pension Fund 0 42

These funds are managed by professional investment institutions on the basis of a conservative, money-market-oriented investment strategy. The current account bears interest at normal market rates.

5) Total financial assets and associates 7) Cash and cash equivalents, securities

(CHF 1,000) 31.12.2009 31.12.2008 (CHF 1,000) 31.12.2009 of which AZNF 31.12.2008 of which AZNF APT Airport Technologies AG, Kloten Equity share 100% / share capital CHF 1.8 million 1,800 1,800 Cash and call deposit 214,600 7,013 64,129 22,374 Unique Betriebssysteme AG, Kloten Equity share 100% / share capital CHF 0.1 million 100 100 Own shares 1,548 9,096 Unique Betriebssysteme AG, Kloten Loan 1) 2,607 3,357 Total cash and cash equivalents, securities 216,148 7,013 73,225 22,374 Unique Airports Worldwide AG, Kloten Equity share 100% / share capital CHF 0.1 million 100 100 Unique Airports Worldwide AG, Kloten Loan 1) 12,914 6,607 Bangalore International Airport Ltd., India Equity share 5% / share capital INR 3,846 million 3,236 5,829 Unique Chile S.A., Chile Loan 1,230 1,113 Reserves for own shares are reported separately under equity. FZ Colombia S.A., Chile Loan 11 11 Administradora Unique IDC C.A., Venezuela Equity share 49.5% / share capital VEB 25 million 0 0 Aeropuertos Ascociados de Venezuela C.A., Venezuela Equity share 49.5% / share capital VEB 10 million 0 0 Number of shares 2009 2008 Total financial assets and associates 21,998 18,917 Holdings at beginning of financial year 36,459 3,947 Acquisitions (at applicable market price) 235 38,291 Sales (at applicable market price) –28,106 0 1)  Entirely subject to subordination. Free distribution of shares –3,613 –5,779 Holdings at end of financial year 4,975 36,459

The purpose of APT Airport Technologies AG is to provide technical, Due to the continued intervention by the local government concerning operational and commercial design, planning, project implementation the airport on Isla de Margarita (Venezuela), figures for the 2009 and operation of communication and strategic management systems financial year are still not available. In 2006, the governor of the province 8) Debentures and non-current loans for airports. of Nueva Esparta expropriated the airport on Isla de Margarita for the second time, after which the airport was operated by a “junta The purpose of Unique Betriebssysteme AG is to operate the interventora” under the supervision of the Venezuelan supreme (CHF 1,000) 31.12.2009 31.12.2008 infrastructure of relevance to Zurich Airport. court up until spring 2009. On 4 March 2009 the Venezuelan­ supreme Japanese private placement 421,173 421,173 court ordered that the “junta interventora” is to be dissolved and US private placement 365,750 365,750 Unique Airports Worldwide AG is responsible for advising, operating management of the airport is to be turned over to the central government Liabilities towards banks arising from US car park lease 110,230 162,649 and/or owning airports and airport-related companies throughout of Venezuela. Flughafen Zürich AG finds this action unacceptable Debentures 225,000 150,000 Total debentures and non-current loans 1,122,153 1,099,572 the world. and will therefore put the case before the International Center for Settlement of Investment Dispute (ICSID) in Washington D.C. if Up until 29 December 2009, Flughafen Zürich AG held a 17 percent an amicable settlement cannot be reached in the next few months. stake in the share capital of Bangalore International Airport Ltd. (BIAL), This step is in compliance with the investment protection treaty the owner and operator of the greenfield airport that was opened that exists between Venezuela and Switzerland. The value of the two The following non-current financial liabilities are fixed interest-bearing borrowings: in Bengaluru, India, in May 2008. Following the sale of 12 percent of involved associates was fully impaired in 2006. its holding in BIAL (proceeds of disposal before tax: 98.6 million Swiss francs), Flughafen Zürich AG still held a 5 percent stake in the Loans to subsidiaries bear interest at normal market rates. Nominal Interest Indian airport operator as of the balance sheet date. Flughafen Zürich amount Early payment (CHF 1,000) 31.12.2009 Duration Interest rate repayment dates AG retains responsibility for the operation of the airport on the basis 23 May/ of an operating, management and service level agreement. Revenue Japanese private placement 421,173 2003–2024 5.730% no 23 November is flowing to Flughafen Zürich AG from this agreement. 11 April/ US private placement 365,750 2003–2015 4.7525% from 2011 11 October Liabilities towards banks arising from US car park lease 110,230 2003–2012 3.606% since 2005 20 December Debenture 225,000 2009–2014 4.5% no 18 February

- 139 - Financial report | Notes Financial report | Notes

9) Provisions for aircraft noise 11) Current financial liabilities

(CHF 1,000) 31.12.2009 31.12.2008 (CHF 1,000) 31.12.2009 31.12.2008 Provisions for aircraft noise as of 1 January 284,148 258,631 Current liabilities towards banks arising from US car park lease 52,418 50,696 Increase of provisions for aircraft noise 19,834 32,800 Debenture (redemption 14.6.2010/26.3.2009) 150,000 128,000 Increase of provisions for formal expropriations 0 649 Total current financial liabilities 202,418 178,696 Provisions for aircraft noise before operating and imputed costs 303,982 292,080

Noise-related operating costs –4,667 –4,331 Interest income from assets of Airport of Zurich Noise Fund 3,383 6,073 Adjustments to fair value of securities of Airport of Zurich Noise Fund –24 4,396 12) Current provisions Write-off of financial assets of Airport of Zurich Noise Fund –128 –14,070 Provision for aircraft noise as of 31 December 302,546 284,148

(CHF 1,000) 31.12.2009 31.12.2008 Amounts due to personnel (holidays and overtime) 5,273 7,517 Tax liabilities 13,183 19,876 The increase of provisions for aircraft noise has been calculated as follows: Utilisation fees 1) 1,129 1,129 Other liabilities 572 575 Total current provisions 20,157 29,097

(CHF 1,000) 2009 2008 Revenue from noise charges 32,268 46,436 1) Utilisation fees were billed for one year in 2006 and suspended as of 1 January 2007. In 2007 a legally binding court ruling went largely in favour of Flughafen Zürich AG, confirming Costs for sound insulation and other measures –6,033 –9,303 that the collection of utilisation fees from companies providing ground handling services was lawful. As a consequence, from the total of 10.0 million Swiss francs invoiced in the Costs for formal expropriations –767 –1,514 2006 financial year, 6.4 million Swiss francs were reported in the 2007 income statement as extraordinary result, net. As before, an amount of 1.1 million Swiss francs from invoiced Amortisation of intangible asset from right of formal expropriation –5,634 –2,819 utilisation fees has not been included. These invoiced amounts have been deferred, since one partner continues to dispute the legality of the collection of utilisation fees. The Increase of provisions for aircraft noise 19,834 32,800 corresponding legal proceedings are in progress, and a first-instance ruling is expected in the course of 2010.

Total expenditure for sound-insulation measures and formal expropriations includes the following: 13) Major shareholders

As of the balance sheet date, the following shareholders or groups of shareholders held more than five percent of the voting rights: (CHF 1,000) 2009 2008 Increase of provisions for aircraft noise 19,834 32,800 Costs for sound insulation and other measures 6,033 9,303 2009 2008 Costs for formal expropriations 767 1,514 Canton of Zurich (including BVK pension fund) 33.36% 33.36% Total costs for sound insulation and formal expropriations 26,634 43,617 City of Zurich (including pension fund of the City of Zurich) 5.04% 5.03%

For reporting of noise data in the financial statements according to the Swiss Code of Obligations see also “Notes to the financial statements”, 14) Related parties The Canton of Zurich has contractually agreed with Flughafen Zürich “Accounting policies”, point 2.8, “Noise-related data”, page 134, and “Current risk situation”, point 5, “Reporting of noise-related costs in the AG to assume the prefinancing for “old” aircraft noise compensation financial statements” on pages 135 to 136. Related parties are: payments. Furthermore, the Canton of Zurich has granted Flughafen Zürich AG a credit facility with a duration of 10 years (2002–2012) • Canton of Zurich within the scope of a framework credit agreement. The maximum 10) Non-current provisions • Members of the Board of Directors available amount of this credit facility corresponds to the total • Members of the Management Board investments­ in engineering structures relating to expansion stage 5, after adjustment for the depreciation to be carried out on these (CHF 1,000) 31.12.2009 31.12.2008 investments. The credit facility limit was 659.6 million Swiss francs Pension fund liabilities 3,708 3,443 as of 31 December 2009. It is presently not being used. Provisional tenancy agreements 1,500 1,500 Total non-current provisions 5,208 4,943

- 141 - Financial report | Notes

a) Remuneration of related parties Management Board in 2009:

The following amounts were paid to related parties in the form of remuneration: Remuneration of members of the Management Board was effected as shown in the table below. The bonus (cash and share components) is accrued for the period under review, and payment is made in spring in the following year: Board of Directors in 2009: 1) (CHF)

Recipient Function members for Remuneration of Directors of the Board for Remuneration meetings board attending for Remuneration membership committee for Remuneration meetings committee contributions Social security Total (CHF)

Andreas Schmid Chairman 150,000 20,000 10,000 10,000 11,512 201,512 Recipient Salary Bonus (cash) Bonus (shares) insurance and social Pension expenses Miscellaneous CHF Total of shares Number price (CHF) Share Dr. Lukas Briner Vice Chairman 60,000 20,000 5,000 7,500 5,935 98,435 Thomas E. Kern 370,000 308,333 154,167 139,490 26,478 998,468 495 311.25 Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 45,000 20,000 10,000 7,500 5,293 87,793 Other members of the Management Board 1,283,333 548,829 274,414 397,974 111,641 2,616,191 882 311.25 Martin Candrian Member; Chairman of the Audit & Finance Committee 45,000 17,500 10,000 5,000 4,972 82,472 Total 1,653,333 857,162 428,581 537,464 138,119 3,614,659 1,377 Dr. Martin Wetter Member 45,000 20,000 5,000 7,500 4,972 82,472 Ulrik Svensson Member 45,000 17,500 5,000 5,000 0 72,500 1) Pension and social insurance expenses include contributions to supplementary retirement insurance, as well as employer‘s contributions to social security and staff benefit schemes. Dr. Elmar Ledergerber 1) Member 18,000 17,500 0 5,000 2,598 43,098 Rita Fuhrer 2) Member 0 4,000 0 0 257 4,257 Total 408,000 136,500 45,000 47,500 35,539 672,539 The number of shares indicated above for the bonus portion is based These shares are blocked for a period of four years. No severance on the share price as of the end of the year. The definitive number payments or other non-current payments were made in 2009. 1) In addition, a lump sum of 32,000 Swiss francs was paid to the City of Zurich. of shares is calculated on the basis of the share price at grant date. 2) In addition, a lump sum of 58,500 Swiss francs was paid to the Department of Economics of the Canton of Zurich.

Board of Directors in 2008: Management Board in 2008:

(CHF) 1)

Recipient Function members for Remuneration of Directors of the Board for Remuneration meetings board attending for Remuneration membership committee for Remuneration meetings committee contributions Social security Total Andreas Schmid Chairman 150,000 25,000 10,000 22,500 12,449 219,949 (CHF)

Dr. Lukas Briner Vice Chairman 60,000 25,000 5,000 22,500 7,218 119,718 Recipient Salary Bonus (cash) Bonus (shares) insurance and social Pension expenses Miscellaneous CHF Total of shares Number price (CHF) Share Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 45,000 25,000 10,000 22,500 6,576 109,076 Thomas E. Kern 336,828 269,462 134,731 109,685 24,648 875,354 540 249.50 Martin Candrian Member; Chairman of the Audit & Finance Committee 45,000 25,000 10,000 5,000 5,454 90,454 Other members of the Management Board 1,222,945 641,471 189,933 506,701 93,759 2,654,809 762 249.50 Dr. Martin Wetter Member 45,000 25,000 5,000 15,000 5,774 95,774 Total 1,559,773 910,933 324,664 616,386 118,407 3,530,163 1,302 Ulrik Svensson (from 17.4.2008) Member 33,750 17,500 3,750 2,500 0 57,500 Dr. Elmar Ledergerber 1) Member 0 25,000 0 5,000 1,925 31,925 1) Pension and social insurance expenses include contributions to supplementary retirement insurance, as well as employer‘s contributions to social security and staff benefit schemes. Rita Fuhrer 2) Member 0 8,500 0 0 545 9,045 In the 2008 annual report, supplementary retirement insurance was not recognised in pension and social insurance expenses. This is shown correctly for 2008 in the table above. Total 378,750 176,000 43,750 95,000 39,941 733,441

1)  In addition, a lump sum of 50,000 Swiss francs was paid to the City of Zurich. The final amount paid to the Management Board for 2008 was 3.6 In the year under review, the Canton of Zurich police force was 2) In addition, a lump sum of 66,500 Swiss francs was paid to the Department of Economics of the Canton of Zurich. million Swiss francs. re-imbursed at market conditions for services rendered for a total amount of 92.8 million Swiss francs (2008: 91.4 million Swiss There is no share or option programme for the Board of Directors. francs) in accordance with the applicable service level agreement.

- 143 - Financial report | Notes Financial report | Distribution of available earnings

b) Shares held by related parties Finance leases not capitalised

As of balance sheet date, members of the Board of Directors and related parties held the following number of shares: (CHF 1,000) 31.12.2009 31.12.2008 Finance lease liabilities not reported in the balance sheet 1) 78,148 86,614 Number of Number of shares as of shares as of 1)  Name Function 31.12.2009 31.12.2008 See “Accounting policies”, “Valuation principles”, “Finance lease”. Andreas Schmid Chairman 4 4 Dr. Lukas Briner Vice Chairman 21 21 Dr. Kaspar Schiller Member; Chairman of the Nomination & Compensation Committee 13 13 Martin Candrian Member; Chairman of the Audit & Finance Committee 375 375 In connection with the US car park lease, the utilisation rights to multi-storey car parks 1, 2, 3 and 6 serve as collateral. Dr. Martin Wetter Member 0 0 Ulrik Svensson Member 0 0 For the cross currency interest rate swaps relating to the US private placement and the Japanese private placement, as of balance sheet date Dr. Elmar Ledergerber Member 110 110 there were 9.9 million Swiss francs provided as collateral in the form of cash and cash equivalents (31 December 2008: 3.4 million) and 168 Rita Fuhrer Member 0 0 million Swiss francs provided as collateral in the form of letters of credit (31 December 2008: 146 million). Total 523 523

16) Information concerning the performance of a risk assessment

As of balance sheet date, members of the Management Board and related parties held the following number of shares: For information concerning the performance of a risk assessment, see “Notes to the consolidated financial statements”, note 22.1 (pages 118 to 123).

Number of Number of shares as of shares as of 17) Events occurring after the balance sheet date No events occurred between 31 December 2009 and the date on Name 31.12.2009 31.12.2008 which the financial statements according to the provisions of the Thomas E. Kern 690 137 The Board of Directors authorised the 2009 financial statements Swiss Code of Obligations were authorised for issue by the Board of Peter Eriksson 1,534 1,315 according to the provisions of the Swiss Code of Obligations to Directors which would require the modification of any of the carrying Rainer Hiltebrand 1,259 984 Daniel Schmucki 415 272 be issued on 4 March 2010. These also have to be approved by amounts of the assets and liabilities of the financial statements Michael Schallhart 32 0 the General Meeting of Shareholders. according to the provisions of the Swiss Code of Obligations or which Stephan Widrig 214 119 would have to be disclosed here. Total 4,144 2,827

Distribution of available earnings Neither Members of the Board of Directors nor the Management Board held options on the company‘s shares as of the balance sheet date. The Board of Directors proposes to the General Meeting of Shareholders that the available earnings of 254,874,461 Swiss francs should be used as follows:

15) Miscellaneous CHF Allocation to legal reserves 1) 0 Fire insurance values Payment of an ordinary dividend of CHF 5.00 (gross) 2) 30,701,875 Payment of a special dividend of CHF 2.50 (gross) 2) 15,350,938 To be carried forward 208,821,648 Total available earnings 254,874,461 (CHF 1,000) 31.12.2009 31.12.2008 Buildings including loading bridges 3,412,027 3,287,448 Movables 660,126 732,488 1) No allocation is being made to the legal reserves, because these exceed 50 percent of the nominal share capital 2) The dividend sum covers all outstanding registered shares. However, those shares held by the company at the time of declaration of the dividend are not entitled to a dividend. For this reason, the reported dividend sum may be correspondingly lower.

The figures shown above do not include engineering structures since with GVZ and are therefore not included in the above amount. these cannot be insured via the Building Insurance of the Canton Upon completion, the buildings concerned will be insured on the If the proposals for the 2009 financial year are approved, the ordinary dividend will be 5.00 Swiss francs per share, and the special dividend of Zurich (GVZ). Buildings under construction (which are included in basis of estimates by GVZ. (from the partial disposal of the interest in Bangalore International Airport Ltd.) will be 2.50 Swiss francs per share. After deduction of projects in progress) are covered by a construction period insurance withholding tax of 35 percent, the shareholders will receive a net dividend of 4.88 Swiss francs.

- 145 - Financial report | Audit report

Report of the Statutory Auditor on the Financial Statements to Opinion the General Meeting of Shareholders of Flughafen Zürich AG. In our opinion, the financial statements for the year ended 31 December­ 2009 comply with Swiss law and the company’s articles of incorporation.­ As statutory auditor, we have audited the accompanying financial statements of Flughafen Zürich AG, which comprise the income Without qualifying our opinion, we draw attention to the disclosure statement, balance sheet and notes (pages 132 to 145) for the year regarding “1. Legal issues” and “5. Reporting of noise-related costs ended 31 December 2009. in the financial statements” as part of “Current risk situation” on pages 135 to 136 in the notes to the financial statements. The facts referred Board of Directors’ Responsibility to therein could significantly affect the company’s financial position The board of directors is responsible for the preparation of the financial and performance. Such impact cannot presently be conclusively statements in accordance with the requirements of Swiss law and determined. the company’s articles of incorporation. This responsibility includes designing, implementing and maintaining an internal control system Report on Other Legal Requirements relevant to the preparation of financial statements that are free from We confirm that we meet the legal requirements on licensing according material misstatement, whether due to fraud or error. The board of to the Auditor Oversight Act (AOA) and independence (article directors is further responsible for selecting and applying appropriate 728 CO and article 11 AOA) and that there are no circumstances accounting policies and making accounting estimates that are incompatible with our independence. reasonable in the circumstances. In accordance with article 728a paragraph 1 item 3 CO and Swiss Auditor’s Responsibility Auditing Standard 890, we confirm that an internal control system Our responsibility is to express an opinion on these financial statements exists, which has been designed for the preparation of financial based on our audit. We conducted our audit in accordance with Swiss statements according to the instructions of the board of directors. law and Swiss Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance whether We further confirm that the proposed appropriation of available the financial statements are free from material misstatement. earnings complies with Swiss law and the company’s articles of incorporation. We recommend that the financial statements An audit involves performing procedures to obtain audit evidence submitted to you be approved. about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including KPMG AG the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers the internal control system relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, Marc Ziegler Philipp Hallauer but not for the purpose of expressing an opinion on the effectiveness Licensed Audit Expert Licensed Audit Expert of the entity’s internal control system. An audit also includes evaluating Auditor in Charge the appropriateness of the accounting policies used and the reasonableness of accounting estimates made, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate Zurich, 4 March 2010 to provide a basis for our audit opinion.

- 147 - Key data (5-year comparison) Selected key data excluding the influence of aircraft noise (5-year comparison)1) 2010 financial calendar Amounts in accordance with International Financial Reporting Standards (IFRS)

The following key data are shown excluding the influence of aircraft noise:

(CHF 1,000) 2009 2008 2007 2006 2005 (CHF 1,000) 2009 2008 2007 2006 2005 Financial reporting dates Total revenue 820,207 855,103 802,868 737,109 702,229 Total revenue 792,606 812,998 748,564 686,933 656,031 19 March 2010 Publication of 2009 annual report of which revenue from aviation operations 505,092 525,689 495,981 444,238 418,877 of which revenue from aviation operations 472,824 479,253 437,703 390,215 368,543 15 April 2010 2010 General Meeting of Shareholders of which revenue from non-aviation operations 315,115 329,414 306,887 292,871 283,352 of which revenue from non-aviation operations 319,782 333,745 310,861 296,718 287,488 18 August 2010 Publication of 2010 interim report Operating expenses 417,973 434,862 392,753 358,837 338,282 Operating expenses 417,973 434,862 392,753 358,837 338,282 14 April 2011 2011 General Meeting of Shareholders Earnings before interest, tax, depreciation and amortisation (EBITDA) 402,234 420,241 410,115 378,272 363,947 Earnings before interest, tax, depreciation and amortisation (EBITDA) 374,633 378,136 355,811 328,096 317,749 EBITDA margin (in %) 49.0 49.1 51.1 51.3 51.8 EBITDA margin (in %) 47.2 46.5 47.5 47.8 48.4 Publication dates of traffic statistics Earnings before interest and tax (EBIT) 213,156 234,073 229,202 189,416 175,026 Profit 176,653 100,613 83,495 46,952 21,045 14 April 2010 Traffic statistics for March 2010 EBIT margin (in %) 26.0 27.4 28.5 25.7 24.9 14 May 2010 Traffic statistics for April 2010 Profit 190,610 121,314 130,675 87,448 59,123 11 June 2010 Traffic statistics for May 2010 Key data for shareholders 2009 2008 2007 2006 2005 12 July 2010 Traffic statistics for June 2010 Cash flow from operations 350,933 415,102 410,911 367,213 338,285 Payout ratio (in %) 26.1 30.5 33.1 39.2 23.3 11 August 2010 Traffic statistics for July 2010 Cash flow from investing activities 134,437 258,849 147,339 258,772 117,173 Basic earnings per share (in Swiss francs) 28.92 16.41 13.61 8.24 4.30 14 September 2010 Traffic statistics for August 2010 Invested capital as of 31 December 2,846,535 2,660,769 2,614,569 2,644,440 2,584,795 12 October 2010 Traffic statistics for September 2010 Ø capital employed 2,753,652 2,637,669 2,629,505 2,614,618 2,569,922 1) The reported key data excluding the influence of aircraft noise were adjusted for all significant positions relating to aircraft noise in the income statement and balance 11 November 2010 Traffic statistics for October 2010 Return on Ø capital employed (ROCE in %) 6.2 7.1 6.9 5.7 5.4 sheet. In the income statement, these positions are noise charges, noise-related operating expenses, amortisation of the intangible asset from the right of formal 13 December 2010 Traffic statistics for November 2010 Equity as of 31 December 1,598,411 1,428,935 1,373,384 1,230,464 805,999 expropriation, noise-related financial expenses and financial income, and the tax effects arising from these adjustments. In the balance sheet, all the significant Return on equity (in %) 12.6 8.7 10.0 8.6 7.6 noise-related asset and liability positions have been eliminated. Investor Relations Equity ratio (in %) 44.9 42.5 43.2 38.8 26.3 Michael Ackermann, phone +41 (0)43 816 76 98 Interest-bearing liabilities (net) 838,175 1,019,008 918,833 1,177,985 1,745,299 [email protected] Interest-bearing liabilities/EBITDA 2.08x 2.42x 2.24x 3.11x 4.80x From 15 April 2010: [email protected]

Corporate Communications Key operational data 2009 2008 2007 2006 2005 Sonja Zöchling, phone +41 (0)43 816 46 35 Number of passengers 21,926,872 22,099,233 20,739,113 19,237,216 17,884,652 [email protected] Number of flight movements 262,121 274,991 268,476 260,786 267,363 Freight in tonnes 344,415 387,671 374,264 363,325 372,415 From 15 April 2010: [email protected] Number of full-time positions as of 31 December 1,302 1,254 1,319 1,290 1,262 Number of employees as of 31 December 1,549 1,482 1,552 1,523 1,470 Further information Results and financial information: www.unique.ch/investor From 15 April 2010, www.zurich-airport.com/investorrelations Key data for shareholders 2009 2008 2007 2006 2005 Number of issued shares 6,140,375 6,140,375 6,140,375 6,140,375 4,912,300 The Annual Report is available in German and English. The German Proposed/paid dividend per share (in Swiss francs) 1) 7.50 5.00 4.50 3.00 1.00 Dividend total (in thousand Swiss francs) 46,053 30,702 27,632 18,421 4,912 version is binding. Payout ratio (in %) 24.2 25.3 21.2 21.1 8.3 Capital per share (in Swiss francs) 260.31 232.71 223.66 200.39 164.08 Basic earnings per share (in Swiss francs) 31.20 19.78 21.30 15.35 12.08 Diluted earnings per share (in Swiss francs) 31.18 19.77 21.28 15.34 12.06

Share price (in Swiss francs) – High 339.00 486.00 538.00 380.00 236.00 – Low 198.00 242.60 383.00 235.00 147.00

Security number SIX symbol Reuters Flughafen Zürich AG (registered share) 1056796 UZAN UZAZn.S

1) Ordinary dividend of 5.00 Swiss francs and special dividend (from proceeds of partial disposal of Bangalore International Airport Ltd.) of 2.50 Swiss francs in 2009. Publishing details Copyright: Flughafen Zürich AG Photos: Thorsten Futh, Berlin Design: Hotz&Hotz, Steinhausen Editorial: Knobel Corporate Communications AG, Steinhausen Typography: Victor Hotz AG, Steinhausen Printing: www.bmdruck.ch Flughafen Zürich AG Zürich Flughafen

Annual Report 2009

Annual Report | 2009 Every one of us has a favourite spot. And these are as diverse as the people who share their impressions of them with us. Employees, passengers and visitors to Zurich Airport also have their own places – at Switzerland's gateway to the world and the Alps – where they can switch off, recharge their batteries, work or pursue their fascination with flying. Let's visit these small but special spots with them. 2009

Flughafen Zürich AG, P.O. Box, CH–8058 Zurich-Airport, Phone +41 (0)43 816 22 11 Annual Report |